Innovation in Peripheral Areas

Innovation in peripheral, sparsely populated regions is shaped by specific factors relating to regional sectoral structure and the broader regional context for business activity and innovation. The sectoral structure of peripheral regions is shaped by the availability of natural resources and by the additional costs of importing inputs and exporting products and services, so that there tends to be a stronger predominance of sectors such as food/drink, renewable energies and tourism, and a lower share of some types of manufacturing and producer services. The broader context for business activity and innovation depends on the extent and type of public investment in e.g. connectivity (transport/broadband infrastructure and also human networking), higher education and research facilities, and access to business finance.