The double disadvantage of rural place-based policies
Abstract
From the 1990s onward, there has been a notable change in regional policy particularly in Europe and the United States, towards place-based approaches, which reduced the state's redistributive role and increased regional responsibility. Place-based policies, emphasizing tailored development strategies for specific contexts, have since gained attention. Despite extensive scholarly attention on place-based policies, the literature predominantly focuses on urban and metropolitan areas, leaving a gap in understanding their applicability to rural regions. This study conducts a scoping literature review of research on rural place-based policy for innovation and economic development from 2008 to 2022. It explores how rural place-based policy is understood and assesses its relevance for rural contexts. The review identifies a double disadvantage for rural regions, stemming from a lack of agglomeration and institutional capabilities, which highlights the need for new policies to address these challenges. To better suit rural regions, place-based policies must move beyond the urban-centric smart specialisation (S3) model to embrace strategies that strengthen rural institutional contexts, recognize the limitations of agglomeration, and focus on sustainable, inclusive development tailored to the specific needs and potentials of rural areas. Such transformative policies should address future challenges by recognizing peripheral regions as valuable assets, emphasizing that development does not necessarily require growth. The study concludes with an agenda for future rural policy development, emphasizing the necessity of genuinely tailored place-based approaches for rural areas.
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Copyright (c) 2025 Stine Lien, Ulla Higdem

This work is licensed under a Creative Commons Attribution 4.0 International License.
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