REID supported the OECD in the production of Enhancing Rural Innovation in Scotland, a comprehensive study analysing the performance, policy landscape and opportunities for innovation across rural Scotland. Recognising the critical role that rural areas play in economic prosperity — accounting for significant productivity growth and social innovation — the study examined how policies, programmes and local ecosystems can better enable innovation and entrepreneurship outside urban centres.

The project combined rigorous evidence review with on-the-ground fieldwork, including visits to the Highlands & Islands, Galloway Forest in the South of Scotland, and rural communities south of Glasgow. These visits informed the assessment of local dynamics, constraints and innovation pathways.

The report provides an in-depth review of structural factors affecting rural innovation — from labour markets and demographic trends to institutional support systems — and highlights the importance of social innovation alongside firm-based innovation. It identified strengths in Scotland’s rural innovation ecosystem, including strong university-firm linkages and a robust network of regional development agencies, while also outlining bottlenecks related to access to services, skills and tailored support.

Based on the analysis, the study offered targeted recommendations to reinforce the enabling environment for rural entrepreneurs, improve the delivery of innovation support services, and strengthen coordination across public and private actors. The work aimed to support the implementation of Scotland’s National Innovation Strategy and inform international policy discussions on rural innovation.

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