Korneliusz Pylak (p)

Simone Sasso

This study introduces an innovative methodology for measuring rural innovation through the use of advanced digital techniques and artificial intelligence. Traditional metrics based on patents, scientific publications and R&D projects often miss the complex dynamics of innovation in rural contexts where such activities are rare. To fill this gap, we propose a framework that uses unstructured textual data from company websites to capture the evolution of product and service innovation in rural regions.

Our study focuses on Poland, utilizing a comprehensive REGON database to identify companies operating in rural areas. We filter out farms with no additional economic activity and exclude companies located in urban centers, thus isolating companies that truly represent the rural economy. For each selected company, we retrieve website data - from records or targeted web searches - and use advanced web scraping techniques to extract textual information related to their offerings.

A state-of-the-art large language model (LLM) is then used to automatically categorize and extract product names and descriptions from unstructured text. This process creates a rich database linking companies to their digital representations of products and the specific websites where these details are found. To integrate the time dimension, we use the Wayback Machine to determine the earliest appearance of these websites, effectively marking the timing of new innovations.

In the next phase, we are refining our LLM to better identify and prioritize links to websites that contain information about products and services. Advanced techniques, including transformer-based semantic analysis, named entity recognition and embedding-based clustering, accelerate historical analysis of archived web content. This allows us to quickly develop a detailed timeline of product and service launches, capturing the dynamics of innovation in rural areas both locally and regionally.

Our approach not only provides a comprehensive picture of the evolution of rural innovation ecosystems, but also offers policymakers and stakeholders a powerful tool for designing targeted interventions to promote rural entrepreneurship and sustainable industrial transformation. Future research can extend these methods to urban contexts, facilitating a deeper exploration of the diffusion of innovation between rural and urban areas in the digital age.

Vincenzo Butticè, Massimo Colombo, Francesca Tenca, Simone Sasso (p)

Massimiliano Guerini

This study investigates the relationship between crowdfunding activity and subsequent VC investment within the same geographical area. We argue that crowdfunding serves as both a signal and a catalyst for local entrepreneurial ecosystems by attracting investor attention and raising awareness among entrepreneurs about the fundraising potential of a given area. This dynamic increases both the supply and demand for financial capital, leading to a rise in VC activity following crowdfunding. However, the extent of this effect is contingent upon the characteristics of the local entrepreneurial ecosystem. In well-developed ecosystems, crowdfunding success translates into increased VC investment, whereas in less developed regions, structural barriers may prevent this outcome. Leveraging investment data at the Local Administrative Unit (LAU) level, our analysis reveals that crowdfunding activity is positively associated with subsequent VC investment in urban areas. In contrast, in rural regions, the relationship is negative. These findings underscore the importance of geographic context in shaping the role of crowdfunding within entrepreneurial finance and regional development.

Massimiliano Guerini (p), Massimo Colombo, Lena Füner, Hanna Hottenrott, Daniel Souza, Simone Sasso

Korneliusz Pylak

Entrepreneurial activity is a vital component of the development of a country’s economy. We study the characteristics of entrepreneurship in rural areas across France, Germany and the UK, assessing both the quantity and quality of entrepreneurial activity. Our analysis is based on business registry data in the selected countries covering the period from 2009 to 2023. We identify a number of critical factors shaping rural entrepreneurship. Additionally, we explore the impact of inter-regional spillovers from nearby urban areas. The findings provide valuable insights for policymakers and practitioners, informing strategies to foster high-potential ventures in rural regions.