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SOCIAL INNOVATIONS FOR SUSTAINABLE LATVIAВ’S RURAL DEVELOPMENT

L. Melece, I. Shena

Abstract

The innovations, especially social, are widely recognized as a strategic base of rural areas’ sustainable development. Numerous studies have found the positive impact of social capital on innovations, especially social innovations. Furthermore, the innovation is an important tool to transform social capital into the higher income levels and higher innovation performance. The paper presents an assessment of the role of social capital and its relationship to innovations, particularly social innovations in rural areas. As an example of an indicator or group of social capital and innovation, the development of cooperatives in rural areas has been evaluated. Moreover, the benefits for stakeholders (i.e. farmers, consumers, community and society at all) provided by rural, especially agricultural, cooperatives are estimated. Besides, the nature and impact of support for agricultural cooperatives under the Common Agriculture Policy and Rural Development Program, particularly present – 2014-2020, are also examined. Furthermore, cooperation activities among cooperatives are characterized. It is concluded that the creation of social capital can support various innovations, especially social, 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. The findings show the statistically significant growth of cooperatives’ turnover, as well as the development of local food system and innovative forms of Local food systems (i.e. Short food supply chain).

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DOI resolver: doi.org/10.5593/sgemsocial2018/1.3/S04.097

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