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Increasing attention is being given to the role of innovation in promoting rural development and sustainable intensification of agriculture. By means of quantitative data and semi-structured interviews with representatives of the main actors in the rural and agricultural innovation chains, this paper compares and contrasts the status and role of innovation among rural actors and farmers in Hungary and Romania. In both countries, many NUTS3 regions are predominantly rural (PR), showing the importance of promoting innovation in agriculture and rural areas. In Hungary the percentage of households in PR regions having subscribed to broadband Internet connection was almost double that of Romania and the selected education and training indicators (both among the general population and among farmers) were also higher. The state of innovation in farming in the two countries is assessed by the interviewees to be weak and it was confirmed that many farmers are either simply followers of innovation, or do not attach importance to innovation. In Romania, foreign/multinational firms/companies are believed to be the major producers of innovation. Although in both countries the state is perceived to have a major role in the mediation of innovation, governmental organisations could do more to improve innovation. It remains to be seen whether the current policy interventions will stimulate an increase in innovation in the two countries. Keywords:

Innovation in farming and rural areas in Hungary and Romania: its current state and determining factors