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Economic Development, Resilience, and Innovation
NERCRD conducts research on the causes and consequences of economic resilience and innovation, and supports outreach that empowers communities to create vibrant local economies.
Recent Publications
Broadband access and agritourism operations in the United States
Abstract: An online presence is crucial for agritourism operators to connect with consumers. In this study, we use count data regression models to examine the correlation between average broadband speed adopted and the number of agritourism operations. We found that adoption of fast broadband in 2012 was associated with a significantly higher number of agritourism operations nationally in 2017, underscoring the role of broadband connectivity in facilitating interactions between farmers and consumers, as well as in promoting agritourism. However, only a weak association exists in rural counties, indicating that the broadband–agritourism relationship does not extend to less populated areas.
Authors: Claudia Schmidt, Luyi Han, Arian Moghadam, Stephan J. Goetz
Publication: Journal of the Agricultural and Applied Economics Association Date Published: June 17, 2024
Direct-to-Consumer Sales of Agrifood Products by US Farms: Data from the 2022 Census of Agriculture
A new data brief by Jason S. Entsminger (University of Maine) and Claudia Schmidt (Penn State and NERCRD) provides a snapshot of the direct-to-consumer sales of agrifood products, and documents recent changes across the industry. The data brief, which was published by the Northeast Regional Center for Rural Development (NERCRD), is available below:
Authors: Jason S. Entsminger and Claudia Schmidt
Publication: NERCRD Data Brief Series Date Published: June 3, 2024
Tags: agritourism, data brief
Agritourism and Recreational Services on US Farms: Data from the 2022 Census of Agriculture
A new data brief by Jason S. Entsminger (University of Maine) and Claudia Schmidt (Penn State and NERCRD) provides a snapshot of the national agritourism landscape and documents recent changes across the industry. The data brief, which was published by the Northeast Regional Center for Rural Development (NERCRD), is available below:
Authors: Jason S. Entsminger and Claudia Schmidt
Publication: NERCRD Data Brief Series Date Published: May 7, 2024
Tags: agritourism, data brief
How export performance is mediated by innovation, owner characteristics, and location
Abstract: We investigate how innovation affects rural nonfarm exports, and thus the U.S. trade deficit. Previous European studies indicate a positive link between R&D expenditures, patented innovation, and exports, but no comparable U.S. firm-level research exists. Using data from the Longitudinal Firm Trade Transactions Database and Annual Business Survey, we examine the relationship between innovation and exports for the United States. Employing a two-stage selection model to address endogeneity concerns, our findings suggest a significant connection between innovation and export. The study contributes to understanding the pivotal role of rural nonfarm exports and highlights policy implications for both trade and rural innovation.
Authors: Luyi Han, Timothy R. Wojan, Zheng Tian, Stephan J. Goetz
Publication: Economics Letters Date Published: March 28, 2024
Tags: rural innovation
Testing biasedness of self-reported microbusiness innovation in the annual business survey
This study tests for potential bias in self-reported innovation due to the inclusion of a research and development (R&D) module that only microbusinesses (less than 10 employees) receive in the Annual Business Survey (ABS). Previous research found that respondents to combined innovation/R&D surveys reported innovation at lower rates than respondents to innovation-only surveys. A regression discontinuity design is used to test whether microbusinesses, which constitute a significant portion of U.S. firms with employees, are less likely to report innovation compared to other small businesses. In the vicinity of the 10-employee threshold, the study does not detect statistically significant biases for new-to-market and new-to-business product innovation. Statistical power analysis confirms the nonexistence of biases with a high power. Comparing the survey design of ABS to earlier combined innovation/R&D surveys provides valuable insights for the proposed integration of multiple Federal surveys into a single enterprise platform survey. The findings also have important implications for the accuracy and reliability of innovation data used as an input to policymaking and business development strategies in the United States.
Authors: Luyi Han, Zheng Tian, Timothy R. Wojan, and Stephan J. Goetz
Publication: Plos ONE Date Published: January 12, 2024
Tags: rural innovation
View all publications in Economic Development, Resilience, and Innovation
Current NERCRD Projects
Factors Affecting the Success of Female and Minority Rural Entrepreneurs and Rural Economic Vitality
Prior research suggests that expanding entrepreneurship or self-employment is a key strategy for promoting economic growth in rural, distressed regions. Furthermore, self-employment rates of women and minorities (especially Blacks) have lagged those of White males in rural areas. This project, led by West Virginia University, seeks to understand the factors that support or deter women and minority entrepreneurship and to translate these findings to help key stakeholders develop policies and programs to support women and minority entrepreneurs. Our objectives include 1) identifying the factors associated with higher shares of women and minority self-employed in rural counties using unique proprietary data; 2) examining the factors associated with the success or failure of women and minority entrepreneurs using confidential firm-level micro data; and 3) translating the research findings into Extension programming to support rural women and minority entrepreneurship and promote broad rural prosperity.
Funding Agency: USDA NIFA
Principal Investigator: Heather Stephens, West Virginia University
Accompanying Institution(s): University of Maine, NERCRD
Start Date: May 2023 End Date: May 2026
Caregiving in the Northeast US
In 2023, NERCRD partnered with the North Central Regional Center for Rural Development (NCRCRD) to deploy a survey in the Northeast region focused on the caregiving experiences of households in the Northeast U.S. The survey received 4,480 responses from all 13 states in the region, and sheds light on how caregiving intersects with community and economic development in the Northeast region.
Survey Products:
- Preliminary findings from the survey are available in a research brief titled “The economic and social well-being of caregivers in the Northeast Region.” Additional analyses of these data are underway, and a webinar is being planned to share the findings more broadly.
- The Northeast caregiving dataset is available at: https://purr.purdue.edu/publications/4491/1
The caregiving survey, titled “Caregiving Across the Life Course,” is part of the NCRCRD’s recently launched NCR-Stat, a North Central regional dataset being developed as a venue and incentive for interdisciplinary collaboration. The caregiving survey was developed by researchers from NCRCRD, The Ohio State University, the National Farm Medicine Center, Penn State, AARP, University of Minnesota, Purdue University, University of Rhode Island, and South Dakota State University to better understand how caregiving intersects with community and economic development.
Funding Agency: USDA NIFA via NERCRD's core funding
Accompanying Institution(s): NCRCRD, The Ohio State University, Purdue University, Penn State, AARP, University of Minnesota, University of Rhode Island, South Dakota State University
Start Date: October 2023 End Date: Ongoing
Tourism Resilience and Community Sustainability: Adaptation and Recovery of Rural Businesses and Destinations
This multi-state Hatch research project will examine resilience and recovery through the lens of rural tourism in the Northeast region. Planned objectives include conducting collaborative assessments of rural tourism at the multi-state level; investigating the resilience, adaptability, and recoverability of different components of the rural tourism system; and identifying strategies that tourism businesses and destinations are using to cope with the pandemic.
Funding Agency: Hatch Multistate Research Fund
Principal Investigator: Doug Arbogast, West Virginia University
Accompanying Institution(s): Penn State
Start Date: October 2022 End Date: September 2027
Tourism, Resiliency, and Indicators for Post-Pandemic Planning (TRIP)
The long-term goal of this project is to enhance the sustainability and resiliency of rural destinations by providing research-based information and a destination management framework for rural gateway destinations.
Funding Agency: USDA NIFA
Principal Investigator: Douglas Arbogast, West Virginia University
Accompanying Institution(s): Penn State, University of Vermont, University of New Hampshire
Start Date: January 2022 End Date: December 2025
Creating an Effective Support System For Small And Medium-Sized Farm Operators To Succeed In Agritourism
Agritourism activity has the potential not only to keep small- and medium-sized farms in business but also to provide important local economic development spillover effects. While agritourism is not profitable or even appropriate in all communities, various stakeholders report that key barriers currently prevent farmers who would like to provide agritourism services from doing so. These barriers represent opportunity costs and include not only lack of information among producers, consumers, supporting organizations and policy makers, but also regulatory gaps across the states. Drawing on extensive stakeholder input, guidance and collaboration, the goal of this four-year project led by NERCRD Faculty Affiliate Claudia Schmidt (Penn State) is to develop and disseminate practical information that will allow small- and medium-sized farmers and rural communities to benefit from the growing consumer interest in agritourism activities. Supporting objectives include understanding the roles and educational needs of various organizations in supporting agritourism; improving understanding of factors that contribute to growth in agritourism across U.S. counties; and delivering peer-reviewed educational materials to farmers as well as supporting organizations and policy makers.
Collaborators on the project included:
- Claudia Schmidt, Penn State and NERCRD, PI
- Lisa Chase, University of Vermont
- Jason Entsminger, University of Maine
- Stephan J. Goetz and Zheng Tian, Penn State and NERCRD
- Sarah Cornelisse, Jackie Schweichler, and Suzanna Windon, Penn State
- Stacy Tomas, Oklahoma State University
Below is a list of impacts and outputs from this project, which will be updated regularly as the research is ongoing. For a complete report on the work of this project, visit the USDA NIFA reporting portal.
Selected Impacts:
- Through a number of publications and presentations made by the project team, researchers, agritourism support organizations, and non-technical audiences have increased their understanding of the status of agritourism in the U.S. and how it can be supported.
- For example, the researchers found that agritourism and direct farm sales complement one another when they occur within the same community. These findings could help farmers and the local organizations that support them plan strategically for farm resilience and growth, and were shared widely via a peer-reviewed publication, a Penn State News release, and presentations.
- The researchers also found that availability and adoption of high-speed broadband appears to boost the number of farms offering agritourism activities. These findings bolster the argument for expanding broadband availability in support of farm operators who want to benefit from the growing consumer interest in on-farm experiences. This research was published in the Journal of the Agricultural and Applied Economics Association, and were shared widely via a Penn State News release and presentations.
Selected Outputs
- Hollas, C. R., Chase, L., Conner, D., Dickes, L., Lamie, R. D., Schmidt, C., Singh-Knights, D., & Quella, L. (2021). Factors Related to Profitability of Agritourism in the United States: Results from a National Survey of Operators. Sustainability, 13(23), 13334.
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Schmidt, C., Chase, L., Barbieri, C., Rilla, E., Knights, D. S., Thilmany, D., Tomas, S., Dickes, L., Cornelisse, S., Lamie, R. D., Callahan, R., George, H., Leff, P., Schmidt, C., Chase, L., Barbieri, C., Rilla, E., Knights, D. S., Thilmany, D., … Leff, P. (2022). Linking Research and Practice: The Role of Extension on Agritourism Development in the United States. Applied Economics Teaching Resources, 4(3).
- Schmidt, C., Han, L., Moghadam, A., & Goetz, S. J. (2024). Broadband access and agritourism operations in the United States. Journal of the Agricultural and Applied Economics Association, jaa2.128.
- Schmidt, C., Tian, Z., Goetz, S. J., Hollas, C. R., & Chase, L. (2023). Agritourism and direct sales clusters in the United States. Agricultural and Resource Economics Review, 52(1), 168–188.
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Schmidt, C., Entsminger, J., Lo, K., Hollas, C., Tomas, S., Goetz, S. J., & Cornelisse, S. (2023). Agritourism in the United States: State and National Fact Sheets. (More information about the fact sheets is available via this Penn State News article.)
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Entsminger, J. S., & Schmidt, C. (2024a). Agritourism and Recreational Services on US Farms: Data from the 2022 Census of Agriculture. (NERCRD Data Brief 2024–1).Entsminger, J. S., & Schmidt, C. (2024b). Direct-to-Consumer Sales of Agrifood Products by US Farms: Data from the 2022 Census of Agriculture. (NERCRD Data Brief 2024–2).
Funding Agency: USDA NIFA
Principal Investigator: Claudia Schmidt, Penn State
Accompanying Institution(s): University of Vermont, Oklahoma State University, University of Maine
Start Date: July 2020 End Date: June 2024