Scandinavian Working Papers in Economics

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

No 2025/14: Varieties of innovation and transition pathways in rural areas: A theoretical perspective to technology-, community-, and nature-based development

Markus Grillitsch (), Rhiannon Pugh (), Michal Miedzinski and Simone Sasso
Additional contact information
Markus Grillitsch: CIRCLE, Lund University
Rhiannon Pugh: CIRCLE, Lund University
Michal Miedzinski: Joint Research Centre of the European Commission, Postal: Seville, Spain
Simone Sasso: Joint Research Centre of the European Commission, Postal: Seville, Spain

Abstract: Rural regions encompass a wide variety of contexts, often facing challenges such as population decline and ageing, or limited infrastructure and services. Yet, rural territories can also be unique places for experimentation and serve as sites of transformative, sustainability-oriented development. We contribute with the development of a theoretical perspective on rural transition pathways that connects rural pre-conditions across industrial, social, and ecological dimensions with distinct varieties of innovation—technological, community-based, and nature-based—and with system effects achieved through two key elements: change agency and rescaling. We identify four archetypes of transition pathways in rural areas: rescaling a rural niche, transforming an existing industry, a community-based pathway, and a nature-based pathway, and provide an empirical illustration for each. The archetypes capture variations of possible transition pathways grounded in theoretical differences in the processes leading to system change. As such, the archetypes are propositions regarding why and how sustainable and inclusive system change can occur in rural regions.

Keywords: rural development; science and technology innovation; transition pathways; agency; rescaling; place-based policy; foundation economy; nature-based innovation; bioeconomy

JEL-codes: O18; Q01; R11

Language: English

26 pages, September 25, 2026

Note: This manuscript resulted from work funded within the SINATRA (Sustainable Innovation and Transition pathways in Rural Areas) project of the Joint Research Centre of the European Commission.

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