Innovative solutions for rural areas: development of social capital
2013
Melece, L., Latvian State Inst. of Agrarian Economics, Riga (Latvia)
The paper presents results of studies devoted to clarifying the role of social capital, and its relation to innovations and development, particularly, in rural areas. The latest understandings on types and forms of social capital in the economic context are described in the paper. The research provides some consideration towards social capitals' measuring and evaluation. The development of cooperatives in rural areas has been evaluated as example of indicator or category of social capital. It is concluded that social capital can support innovation in several ways and the different dimensions of social capital might influence innovative activity. Moreover, the innovation is an important channel by which social capital improves well-being and economic growth. Analysing the development of cooperatives in rural areas or communities, the results, however, show that the number of cooperatives is nearly constant in the past few years, while the net turnover and members of cooperatives have significantly increased statistically. Some areas for further research are identified, e.g. to investigate the trends of development of other non-governmental institutions such as Rural Partnership associates, which operate on the local level.
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