This report responds to the needs set out in Task 1.1 of the RUSTIK project:
− Critical review of rural change and rural area definitions
− Identification of the concept of Functional Rural Area and the differences/similarities with the current definitions of rural areas at the European level (including EU and non-EU countries). This implies analysing the functional characteristics of rural areas, their importance in the different contexts and interlinkages between urban and rural areas based on these characteristics
− Analysis of the different transition processes and their effects on rural areas
− Definition of a general typology of rural diversity
The report is structured into two main sections.

The first deals with the critical review of the most significant literature on rural areas’ diversity, the related methods and criteria to define the concept of rurality. Different approaches are analysed, with their limitations and opportunities. Particular attention is given to the different interpretations of the functional area concept in exploring rural diversity. Finally, this section proposes a methodology to classify rural areas and test it in the fourteen RUSTIK Pilot Regions. Annex 1 presents a list of potential indicators and related sources of information to analyse the main rural functions quantitatively.

The second section explores the most relevant transition processes (socio-economic- demographic, environmental-climatic and digital). These transitions have different impacts on the diversity of rural areas and reflect their different response capacities, depending on, inter alia, the territorial and social capital in each territory. The section concludes by discussing the factors influencing the capacity of rural areas to respond to transitions and related policy issues, as well as the role of policies specifically linked to the three transitions (demographic, environmental and digital).