RUSTIK Living Lab in Austria’s Nockregion-Oberkärnten – Navigating the Future: Small Rural Businesses in Focus

Welcome to the inaugural Living Lab Report for the Austrian Pilot Region, Nockregion-Oberkärnten, situated in the heart of the Central Alps within Carinthia’s southernmost province. Covering 1,324 km² and encompassing 17 municipalities, this region grapples with the persistent challenge of population decline. With only 15% dedicated to permanent settlement, the economic landscape thrives on key sectors like tourism, agriculture, forestry, trade, industry, and construction.

Living Lab Challenge

Our Living Lab challenge focuses on Small Rural Businesses (SRB) in Nockregion-Oberkärnten. Initially exploring the application of a Quality of Life (QoL) Index, we redirected our attention to the more pertinent challenge of identifying the needs and challenges faced by SRBs and establishing a network to support them. This encompasses businesses, including farmers, with no more than 50 employees. The primary objective is to pinpoint data gaps, map the current regional state, and foster a comprehensive understanding of challenges encountered by entrepreneurs and business owners.

The groundwork laid will assess and justify the necessity of establishing a regional network/platform for SRBs. Envisioned as a central hub, this platform addresses challenges such as strengthening awareness of regional products, fostering value chains, facilitating joint training, enhancing negotiation power, addressing sustainable green business management issues, navigating rental space availability, managing challenges in employee recruitment and retention, and focusing on women as a specific target group.

Rationale

This approach rectifies oversights in previous projects by focusing on SRBs’ absence in regional strategies, especially during their foundation and takeover processes. The decision to spotlight SRBs aligns with their substantial contribution to the local economy, providing diverse employment opportunities. In Carinthia, small businesses constitute about 94% of all businesses, playing a crucial role in stimulating local activities and combating vacancies, contributing to the overall attractiveness of rural municipalities.

Knowledge to Date

Insights from expert interviews, PRP meetings, and literature research showcase existing business collaborations and challenges faced by SRBs in Nockregion-Oberkärnten. Previous initiatives like IGO and AGZ aimed at business settlements and sharing employees among different employers, underscoring the region’s efforts. Challenges, including limited time capacity for small business owners, difficulties in consolidating projects, and issues like employee retention and high rental prices, have surfaced through stakeholder engagement.

Research Questions

  • What is the current state of the SRB landscape in Nockregion-Oberkärnten concerning the number of businesses, sector, branches, and employment sizes?
  • What data points and indicators are relevant for stakeholders to describe or gain a better understanding of the current situation of SRBs? What are the opportunities and shortcomings
  • What benefits do SRBs envision from a new platform or network, and how should it be structured to ensure acceptance?

Policy Relevance

To address the socio-economic transition, a holistic approach involving all sectors is deemed necessary. The Living Lab’s transition challenge aims to strengthen the position of SRBs in regional decision-making processes, aligning with the PRP’s objective of attracting new inhabitants and encouraging locals to stay. Establishing a network of SRBs is viewed as a critical step in adapting regional policies to address demographic change.

Emerging Data Needs

The Living Lab will focus on SRBs, aiming to identify and fill data gaps to understand their challenges and obstacles. Combining quantitative and qualitative local data will provide a comprehensive foundation for future strategies and decision-making.

Data Availability

While statistical data on workplaces, companies, and employees for SRBs is available, specific needs and challenges data are lacking. Expert interviews and consultations with stakeholders will be conducted to improve the knowledge base. OpenStreetMap data since 2012 will complement spatial analyses, providing insights into the spatial distribution of economic activities in the region.

RUSTIK Living Lab in Austria Spotlighted in the ‘Living Labs in Rural Areas: How To?’ Webinar

Living labs

In the picturesque landscapes of Carinthia, Austria, the Nockregion-Oberkärnten faces a set of challenges that demand innovative solutions for sustainable development. Daria Ernst, representing the Federal Institute of Agricultural Economics, Rural and Mountain Research (BAB), took center stage at the “Living Labs in rural areas: HOW TO? Knowledge Transfer Accelerator” organized by the Granular project and the European Association for Innovation in Local Development (AEIDL). 

The Living Lab Pilot Region, nestled in Carinthia, spans 1,324 km², encompassing 17 municipalities with a population of 52,500. The region grapples with significant issues, including an imbalanced job structure, deficits in job supply, high commuter rates, out-migration of young people and women, and an aging population. 

Daria Ernst adeptly introduced two pivotal topics for the Living Lab challenge, considered and deliberated with the Project Review Panel and the Focus Group, aligning with the regional strategy: 

Initially, they contemplated channelling efforts into the implementation of a Quality of Life (QoL) Index tailored specifically to Nockregion-Oberkärnten. This innovative tool aspired to gauge progress and territorial development, offering nuanced insights into diverse facets of the region’s wellbeing. However, this proposal encountered several critical issues: 

  • Challenge of Comparability: Addressing the intricate task of ensuring the QoL Index’s comparability with other regions. 
  • Living Lab Approach Hurdles: Tackling challenges associated with the applicability of the Living Lab approach. 
  • Data Gaps and Capacity Constraints: Identifying and surmounting crucial data gaps and capacity constraints. 

Subsequently, an alternative path emerged as the focal point of this Living Lab endeavor – the establishment of a Network of Small Rural Businesses (SRB), an area overlooked in previous projects. Discussions revealed an absence of representation for SRBs in regional strategies, emphasizing the need to address this gap. The rationale and objectives for this initiative include:  

  • Data Gap Pinpointing: Systematically identifying and addressing data gaps while mapping the current regional state. 
  • Comprehensive Understanding: Cultivating a profound understanding of the challenges confronted by entrepreneurs and business owners. 
  • Justifying the Necessity: Utilizing meticulously collected data to substantiate the imperative of instituting a regional network/platform for SRBs. 
  • Central Hub Functionality: Picturing the envisioned platform as a pivotal central hub adept at addressing challenges and providing indispensable support. 
  • Innovation Pathway: Charting a course that paves the way for innovative projects in unwavering support of SRBs. 

Daria Ernst’s presentation not only showcased a thoughtful consideration of challenges but also illuminated a strategic roadmap for transformative action, promising impactful contributions to the socio-economic fabric of Nockregion-Oberkärnten. As these Living Lab initiatives progress, they hold the potential to redefine the narrative of rural development, furnishing invaluable insights and solutions applicable to analogous regions globally. 

Interacting with EU Projects 

Participation in this webinar provided a valuable opportunity to engage with various projects focused on rural development. Presentations from GRANULAR, SHERPA, ROBUST, and insights beyond European projects were shared, fostering a collaborative exchange of ideas and strategies. The interaction emphasized the pivotal role of Living Labs in shaping effective policies for rural advancement. As the discussions unfold, the shared experiences promise to enhance the collective knowledge pool and drive impactful initiatives in the realm of rural development. 

“Exploring the rural-urban continuum”

Exploring the rural-urban continuum: how to define Functional Rural Areas in the context of rural transitions?

Introduction to RUSTIK’s Deliverable D1.1 “Methodological Framework to Define Functional Rural Areas and rural transitions”

The RUSTIK project published its first deliverable, “Exploring the rural-urban continuum”. This methodological framework, developed by the Council for Research in agricultural economics (CREA), Italy, and the Countryside and Community Research Institute (CCRI), UK, aims to define Functional Rural Areas and propose a new approach to their classification.

Why is there a need for a new classification of Rural areas?

To make rural areas ready to adapt to changes it is important to understand how different drivers and trends impact rural areas, and how they respond to change. Hence the need to develop a conceptual framework that explains rural areas’ capacity to respond to the socio-economic/demographic, environmental/climate and digital aspects.  It is important to develop a place-based path and scale up successes at a local level, with appropriate facilitation from national, regional, and local governments.

By enhancing our understanding of the diverse functionalities, unique characteristics, and possible future scenarios of rural areas, the RUSTIK project will be able to provide more effective strategies, initiatives, and policies that promote sustainable transitions in rural areas.

What are rural functional areas? A five-step approach.

Differences exist in defining the term “functional” for rural areas, with shifting criteria and less emphasis on agriculture. The term has varied meanings based on disciplinary and institutional contexts, with a historical urban bias. Efforts are being made to address this bias and recognize the important societal functions provided by rural areas.

There are several approaches to define functional rural areas. Studying functional relations in the case of rural areas implies focusing on the role that the countryside can play in production, consumption and ecosystem functions, not only for nearby urban areas but also for the broader society and in relation to national and international markets, institutions and business actors. It also implies using mixed approaches based on information available at the most granular level or municipal units.

Based on these assumptions, to define functional rural areas, a five-step classification can be made (Fig 1)

 

 

The new classification system will be tested in fourteen Pilot Regions. This process will ensure that the classification is robust and develop an advanced understanding of the Pilot Regions’ characteristics, functionalities and capacities in participating in the next steps of the RUSTIK project.

Diversity of rural areas and their capacity to face transitions

The transitions happening in rural areas are influenced by various drivers and trends, including socio-economic/demographic, environmental/climate, and digital factors. These transitions have the potential to impact the response capacities, territorial capital, and social capital of each rural area. Understanding these drivers and trends is crucial for effective policy development and implementation.

Europe is grappling with an aging population, which is expected to worsen in the coming decades. This leads to disparities between regions, amplified by variations in labour markets, access to services and infrastructure, market power distribution, and the digital divide.

Addressing environmental and climate challenges requires collaborative efforts that go beyond national borders. Policies like the Common Agricultural Policies, Green Deal, and Biodiversity Strategies are crucial in combating these issues. While EU-level targets are important, tangible actions and physical changes must be implemented at the local and regional levels.

The digital transition has the potential to exacerbate existing inequalities and create new divisions, particularly in rural areas. The COVID-19 pandemic highlighted the discrepancies between urban and rural regions, especially in terms of digital access. It is essential for rural communities to develop basic and professional digital skills to participate in the future job market and society. Economic factors, demographics, and limited connectivity further contribute to the digital skills gap.

To effectively respond to these transitions in rural areas, policies need to be tailored to specific needs and places. The delivery of policies is also crucial for their successful implementation. Several steps can be taken to enhance the capacity of rural areas to respond:

  • Identify transition needs: Conduct a thorough analysis to understand the challenges and needs associated with the transition, considering social, economic, and environmental factors.
  • Develop an enabling policy environment: Create policies that empower local actors and communities to make choices aligned with desired outcomes. Provide necessary resources, information, and support for effective decision-making and implementation.
  • Promote the emergence of new institutions and groups: Encourage the formation of local organizations, networks, and collaborations to address challenges associated with the transition.
  • Enhance policy delivery: Ensure clear communication, accessible information, and efficient mechanisms for policy implementation. Involve local stakeholders to increase ownership and involvement.
  • Integrate macro-economic context and policy system: Recognize how macro-drivers and trends at the international level can create risks and opportunities at different territorial levels. Align policies with broader macro-economic goals and incorporate measures to mitigate risks and harness opportunities.
  • Targeted policies for transition challenges: Develop specific policies to facilitate and enable transition possibilities and pathways, including regulations, incentives, advice/information campaigns, and other supportive measures.
  • Focus on sensitive territories: Pay special attention to territories with limited resources or accessibility issues. Design policies that cater to their unique needs, implementing localized systems of incentives and support mechanisms to encourage participation and resilience.

By adopting this comprehensive approach to policy development and delivery, the capacity to respond to transitions can be enhanced, leading to smoother and more effective transitions in social, economic, and environmental domains.

For further information, you can access the full report at https://rustik-he.eu/wp-content/uploads/2023/04/RUSTIK_D-1-1_Methodological_Framework_31.03.23.pdf

 

The 14 RUSTIK Living Labs actors meet in Barcelona to foster knowledge exchange

 

The Pilot Region Kick-off was held in February 2023, and it was RUSTIK’s first in-person knowledge exchange, training, and networking event for partners from the 14 Pilot Regions. The event took place over two days in Barcelona and Osona in Catalonia.

During the Pilot Region Kick-off event, attendees had the opportunity to increase their understanding of the RUSTIK project and interact with the project coordinators. They also delved into how the Pilot Regions could add value to the initiative and gained indispensable knowledge for implementing RUSTIK’s approaches. It was also the first opportunity for exchanging ideas and insights with partners from 14 distinct rural regions across ten states.

During the first day of the meeting, the RUSTIK project was introduced, and the attendees learned about the key concepts that will play a key role throughout the project’s duration and began exploring how these concepts could be put into practice in their respective pilot regions. On the second day, the focus shifted from ideas to action. The attendees comprehended what to anticipate and accomplish as they started to put into action a RUSTIK Living Lab in their pilot regions.

The interactive workshops enabled the attendees to have a direct conversation with the leads in charge of each of the upcoming tasks in the Living Lab. They had the chance to ask questions and provide feedback about the topics covered, which included doing background research on their respective pilot regions led by Franco Mantino (CREA), identifying existing data and data needs led by Andreu Ulied (MCRIT), setting up and assessing their Living Lab led by Janet Dwyer (CCRI), and creating a policy panorama for their pilot region led by Petri Kahila and Juha Halme (UEF).

Our hosts in Catalonia

The hosts for the event were MCRIT and the Ersilia Foundation. On the first day, we visited Sant Miquel de Balenyà, one of RUSTIK’s 14 pilot regions. The town had been established after a train station was built in the area in 1875, and it now has 1,353 residents. The nearby Parc Natural de Montseny is a UNESCO biosphere reserve. The wider region, Osona (with a population of 165,229), is renowned for its sausages and has a ratio of over six pigs per person.