Papers in Innovation Studies,
Lund University, CIRCLE - Centre for Innovation Research

Abstract: Local agency on the edge relates to situations that are particularly harsh and difficult, places where regional development is most needed but also most difficult to achieve. We study the role and relevance of local agency in such situations, as well as enabling and hindering conditions for local agency to emerge. We do this in two peripheral municipalities in Ukraine that were attacked and temporarily occupied by Russian forces but have shown a high degree of resilience. Theoretically, we propose a broad conception of development, which includes human wellbeing and social resilience. Such a broad conception also necessitates a more comprehensive understanding of local agency underpinning development, including social and technological innovation, institutional entrepreneurship and place-based leadership. The cases provide evidence for the potential development impact of bottom-up initiatives, which may unfold if local actors are sufficiently empowered. In the context of the study, a governance reform played an important role comprising decentralisation and municipal amalgamation in the wider context of a mindset change in favour of approximation towards the European Union. Local actors changed institutions, leading to better governance and participation from the citizens. Empowerment of local actors allowed for the successful implementation of multiple projects impacting citizens' wellbeing, improving health and education institutions, as well as cultural, sports and recreation facilities. These changes opened opportunities for increased entrepreneurial activity, contributing towards employment and tax revenue. Moreover, resilience to the Russian invasion rested on improved governance, relationships, citizen engagement, and capacities for project management developed before the war.

Keywords: local agency; regional development; human wellbeing; social resilience

JEL-codes: I31; O18; R11

Language: English

22 pages, September 25, 2026

Note: We would like to thank the team of U-LEAD with Europe for facilitating this research. The Multi-Donor Action "Ukraine Local Empowerment, Accountability and Development Programme (U-LEAD with Europe) is joint action of the European Union and its member states Germany, Poland, Denmark, and Slovenia.

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