Innovation policy often focuses on research and development (R&D) and favours urban centres, therefore rural regions are frequently overlooked. This paper challenges the underlying assumption that innovation-driven growth predominantly occurs in metropolitan areas. Using recent research on young innovative firms in Germany, it demonstrates that innovation in rural areas can flourish through alternative modes of innovation beyond R&D, which can be summarised as ‘learning by doing, using and interacting (DUI)’. The find¬ings advocate a broader understanding of innovation that recognises the unique strengths of rural regions. A more inclusive innovation policy could reconcile the goals of economic efficiency and regional equity more effectively than was previously thought possible.
© 2025 Petrik Runst, Jörg Thomä, published by ZBW – Leibniz-Informationszentrum Wirtschaft
This work is licensed under the Creative Commons Attribution 4.0 License.