Innovative multifunctionality in building competitive position of rural peripheral areas

Purpose: The aim of the study is to present opportunities for the development of innovative multifunctionality as a driving force of economic growth and improvement of living conditions in rural areas. Design/methodology/approach: The considerations were based on a critical analysis of the literature on the subject and materials obtained from online sources. Findings: The main factor of increasing the potential of rural areas are innovative activities enriching the rural economy, conducive to its compatibility with modern economic and social structures. They contribute significantly to the revitalization of the socio-economic fabric of the countryside, by creating new types of economic activity, developing multifunctionality conducive to creating real foundations for achieving sustainable economic growth. However, the future of the village cannot be built solely on its internal resources. Rural development is largely determined by external forces linked to markets and technology. The countryside requires significant innovative cooperation with external areas. Originality/value: In-depth analysis of the creation and adaptation of multifunctional innovations taking into account the appropriate combination of factors related to the local environment with factors related to general economic changes that brings global interdependence, as well as support for extensive business connections.