Abstract
This paper explores how stakeholders in island communities perceive and address systemic challenges to resilience and innovation in the context of the green transition and broader societal change. Drawing on insights from the Interreg FREIIA project – a multi-country, participatory initiative across six European islands—this study employs a design thinking framework and grounded theory methodology to explore how local stakeholders perceive and respond to development challenges, highlighting the
voices and lived experiences of island residents and aiming to understand the realities on the ground and the multidimensional conditions shaping resilience and innovation in their communities.
The findings highlight recurring development challenges, including youth outmigration, housing shortages, seasonal economic dependency, and limited institutional capacity.
The paper argues that sustainable development in island contexts requires participatory governance, inclusive innovation ecosystems, and place-based strategies that reflect local realities. By situating island development within broader debates on peripheralization, productive capabilities, and participatory transformation, the study contributes to the literature on systemic development in island communities.