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SOCIAL CAPITAL AND INNOVATION FOR SUSTAINABLE LATVIAS RURAL DEVELOPMENT
Abstract
The paper presents results of studies devoted to assess the role of social capital and its relation to innovations, including social innovations, and development, particularly in rural areas. As an example of an indicator or category of social capital and innovation, the development of cooperatives in rural areas has been evaluated. Moreover, the benefits (i.e. for farmers, consumers and society) of rural, especially agricultural, cooperatives are estimated. Besides, the nature and impact of state support for agricultural cooperatives via Common Agriculture Program are also estimated. Furthermore, cooperation activities among cooperatives are characterized. It is concluded that creation of social capital can support various innovations in several ways; and the different dimensions of social capital might influence innovative activity. Moreover, the innovation is an important source, which benefits rural areas well-being and economic growth. Findings show the statistically significant growth of cooperatives net turnover, as well as growth of local food chains and innovative forms of food supply to the consumers.
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