Changes in composition and spatial distribution of knowledge-based economy in rural areas of Latvia
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One of the features in the 21st century is growth of knowledge - based economic sector, which is referred as n ew growth theory. New growth theory reflects the attempt to understand the role of knowledge and technology in driving productivity and economic gr owth. In this view, key factors are investments in research and development, education and training and new managerial work structures. The aim of research is to estimate the composition and geographic location of knowledge economy and its perspectives in rural areas of Latvia in post - crisis stage. A special focus was placed on the mentioned processes in territorial units of the regions – municipalities , as the life of residents is influenced not only by national policies, but also by on - going processes in the administrative territories of local governments. The Eurostat classification of industries was used for the analysis of c hanges in composition and spatial distribution of knowledge - based economy. D ata were processed by quantitative and qualitative stat istical analysis, as well as grouping methods. The analysis of the information allows concluding that: municipalities with high and medium - high business is increasing and the business directions with bioeconomic features are the fastest growing ones in ter ms of composition. It must be stated that the economic growth in the rural territories was greatly affected by the quality of local governance and the fact that local community residents’ readiness for active, innovative and inclusive action is strengthene d.