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Rural Digital Innovation Hubs as a Paradigm for Sustainable Business Models in Europe’s Rural Areas

Author

Listed:
  • Simona Stojanova

    (Faculty of Electrical Engineering, University of Ljubljana, Tržaška cesta 25, 1000 Ljubljana, Slovenia)

  • Nina Cvar

    (Faculty of Electrical Engineering, University of Ljubljana, Tržaška cesta 25, 1000 Ljubljana, Slovenia)

  • Jurij Verhovnik

    (Faculty of Electrical Engineering, University of Ljubljana, Tržaška cesta 25, 1000 Ljubljana, Slovenia)

  • Nataša Božić

    (Faculty of Electrical Engineering, University of Ljubljana, Tržaška cesta 25, 1000 Ljubljana, Slovenia)

  • Jure Trilar

    (Faculty of Electrical Engineering, University of Ljubljana, Tržaška cesta 25, 1000 Ljubljana, Slovenia)

  • Andrej Kos

    (Faculty of Electrical Engineering, University of Ljubljana, Tržaška cesta 25, 1000 Ljubljana, Slovenia)

  • Emilija Stojmenova Duh

    (Faculty of Electrical Engineering, University of Ljubljana, Tržaška cesta 25, 1000 Ljubljana, Slovenia)

Abstract

One of the possible solutions of rural development is rural Digital Innovation Hubs (DIHs). Rural DIHs represent an efficient way of improving local environments in a more sustainable way, by affecting local businesses, people and local authorities. The purpose of this paper is to analyze the concept of a rural DIH by exploring the following elements: business model, digital technology and competences, and the policy instrument. We investigate the above-mentioned conceptual elements by conducting a literature review study and synthesizing the findings. Additionally, we provide a case study of the Divina Wine Hub Šmarje as an example of a rural DIH, whose activities are aimed at supporting rural businesses and individuals. The results show that a rural DIH does have a positive impact on local businesses, in particular regarding their sustainability aspect. The local DIH explained in the case study provides possibilities for local businesses to use innovative technological solutions, by supporting them with the right technological equipment and skilled people. From an economic point of view on sustainability, this resulted in business processes optimization, cost reduction, employment opportunities, as well as the strengthening of sustainable consumption and marketing for the winegrowers. Furthermore, it adds to environmental sustainability by adequately assessing the conditions in the vineyards to determine the optimal time and location of effective action, resulting in reducing the environmental footprint. All of this together also contributes to social sustainability by providing fairer distribution of social opportunities and digital inclusion. In this manner, we conclude that rural DIHs should be part of the Smart transformations of rural areas and included in rural development policies.

Suggested Citation

  • Simona Stojanova & Nina Cvar & Jurij Verhovnik & Nataša Božić & Jure Trilar & Andrej Kos & Emilija Stojmenova Duh, 2022. "Rural Digital Innovation Hubs as a Paradigm for Sustainable Business Models in Europe’s Rural Areas," Sustainability, MDPI, vol. 14(21), pages 1-20, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14620-:d:965731
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    References listed on IDEAS

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    2. Iwona Józefowicz & Hanna Michniewicz-Ankiersztajn, 2023. "Digital Tools for Water Resource Management as a Part of a Green Economy in Rural Areas," Sustainability, MDPI, vol. 15(6), pages 1-13, March.
    3. Dong, Hao & Zheng, Yingrong & Tang, Yuhong, 2024. "Impact of FinTech on the industrial structural transformation: Evidence from China's resource-based cities," Resources Policy, Elsevier, vol. 91(C).
    4. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Environmental Sustainability within Attaining Sustainable Development Goals: The Role of Digitalization and the Transport Sector," Sustainability, MDPI, vol. 15(14), pages 1-14, July.

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