Northeast Regional Center for Rural Development

 

 

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Design: A critical input to rural innovative entrepreneurship

Abstract: Described as a mediation between people and technology, design is critical to innovative entrepreneurship but has been ignored in innovation research. The rigorous study of design has suffered from an inability to differentiate firms that approach design as ad hoc from those approaching design as a structured, creative process. This research uses newly available data from the 2022 Annual Business Survey Design Module categorizing 4 different approaches to design. These data allow us to examine the link between design and innovation with a focus on businesses in nonmetropolitan counties that challenges conventional wisdom that design is overwhelmingly an urban phenomenon.

A news release describing the key findings and their implications is available here.

Authors: Timothy Wojan, Luyi Han, Zheng Tian, Stephan J. Goetz

Publication: Journal of Innovation and Entrepreneurship Date Published: June 18, 2025

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Explaining the Urban-Rural Export Gap: Evidence from U.S. Firms

Abstract: The U.S. urban-rural export gap is important given the share of manufactured goods in exports, the rural concentration of manufacturing activity, and recent federal investments in place-based policy. These investments raise questions about the size of the export gap and whether it is explained by differences in endowments or inherent rural disadvantages. Confidential trade data linked with business survey data alongside county-level variables allow an Oaxaca-Blinder decomposition of the export gapUrban factors compensate for a less trade favorable industry mix, including the advantages of urban scale in export performance which may be insurmountable for rural areas.

Authors: Luyi Han, Timothy R. Wojan, Zheng Tian, Stephan J. Goetz

Publication: Journal of the Agricultural and Applied Economics Association Date Published: March 30, 2025

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Insights and oversights: Behind the data on agritourism and direct sales in the United States

Abstract: Agritourism is growing worldwide as farmers and ranchers seek alternative sources of revenue, and consumer demand for agricultural experiences is on the rise. Understanding this sector is important for policymakers, researchers, agricultural service providers, and others seeking to support farm viability and rural entrepreneurship. However, in the U.S., this support is hampered by the lack of a clear definition and consistent, comprehensive means for measuring the agritourism sector. The best available data for the U.S. are from the quinquennial U.S. Department of Agriculture National Agricultural Statistics Service (USDA NASS)’s Census of Agriculture. However, the two questions used by the Census of Agriculture that relate to agritourism are worded in ways that limit a comprehensive understanding of the size and scope of the sector. To illustrate the limitations, we highlight cases from two U.S. states (Texas and Vermont), where different forms of agritourism are present. One such form, hunting, is included in the USDA’s economic assessments of agritourism; another, pick-your-own berries, is not. Along with tastings and purchases of locally grown products, this falls in the category of direct sales. The discrep­ancy can result in misrepresentation and misinter­pretation of the data in analyses and subsequent publications with distorted policy recommenda­tions related to agritourism. We discuss these cases alongside recommendations on how to more accurately measure, and support, agritourism development in the U.S.

Authors: Chadley R. Hollas, Claudia Schmidt, Zheng Tian, Stephan J. Goetz, and Lisa Chase

Publication: Journal of Agriculture, Food Systems, and Community Development Date Published: August 26, 2024

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Cloud computing and rural globalization: Evidence for the U.S. nonfarm economy

Abstract: We use confidential firm-level data to examine the association between export intensity and subscription to cloud computer services – a technology that often requires very high-speed broadband. Our focus on rural nonfarm exports is motivated by the increasing concentration of manufacturing—the dominant export sector—in nonmetropolitan counties and the large public investment in extending high-speed broadband to underserved parts of the U.S. We find that cloud computing is associated with higher export intensity that is consistent with exporting activity placing new demands on IT-enabled functions such as order fulfillment and tracking, marketing, or document control.

Read a news release about this research here.

Authors: Luyi Han, Timothy Wojan, Stephan J. Goetz

Publication: Telecommunications Policy Date Published: June 15, 2024

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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

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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

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Agritourism and Direct Sales Clusters in the United States

Agritourism and direct-to-consumer sales are increasingly used as diversification strategies to generate additional farm revenue streams. Yet despite their growing importance, the impacts, interactions, and adoption of these strategies remain poorly understood. Here we use univariate and bivariate local Moran’s I statistics to identify agritourism and direct-to-consumer sales hotspots in the United States and a Seemingly-Unrelated-Regression Spatial Durbin Model to examine the association between agritourism and direct farm sales to consumers. We find that agritourism and direct sales reinforce each other within the same county but not consistently across neighboring counties.

Authors: Claudia Schmidt, Zheng Tian, Lisa Chase, Chadley Hollas and Stephan J. Goetz

Publication: Agricultural and Resource Economics Review Date Published: April 17, 2023

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Rural US Residents Recognize Anxiety Better than Urbanites and Suburbanites but Hold Similar Stigma

Recognizing signs of psychological distress is a critical first step in assisting people who are struggling with poor mental health to access help. However, community-level factors that impact recognition and stigma are underexplored. The purpose of this study is to investigate the relationship between rurality, other community-level variables, and individual variables with regard to the recognition and stigma of anxiety.

Authors: Scott Loveridge, Mark Skidmore, Robert Shupp, Paula K. Miller, Courtney Cuthbertson, Stephan J. Goetz

Publication: The Journal of Rural Health Date Published: March 29, 2023

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Linking research and practice: The role of Extension on agritourism development in the U.S.

Agritourism is a critical farm diversification strategy for farmers to enhance income and profit potential with benefits related to rural community development, increased awareness of sustainability practices, and local heritage preservation. For rural community and economic development professionals, agritourism has become an important strategy to develop local tourism, grow small businesses, and enhance regional economic diversification. We propose that the agritourism ecosystem would arguably benefit from more robust Extension programming and network development. A discussion of two state case studies, Vermont and California, provides an overview of the critical elements necessary to build a statewide agritourism program. The role of Extension in rural development and tourism underscores the opportunity to utilize agritourism as a broader development strategy. Finally, we make recommendations for growing the role of Extension in agritourism. More robust training and education for Extension professionals, stronger connections to state tourism departments, and more robust advocacy with university and state-level decision makers on the value of agritourism investments are all highlighted as crucial next steps.

Authors: Claudia Schmidt, Lisa Chase, Carla Barbieri, Ellie Rilla, Doolarie Singh Knights, Dawn Thilmany, Stacy Tomas, Lori Dickes, Sarah Cornelisse, R. David Lamie, Rachael Callahan, Holly George, and Penny Leff

Publication: Applied Economics Teaching Resources Date Published: July 1, 2022

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Facility locations in the fresh produce supply chain: An integration of optimization and empirical methods

Facility locations are crucial determinants of supply chain efficiency for aggregating and distributing products. The multi-disciplinary nature of the facility location problem requires multiple complementary approaches, at different levels of aggregation, to accommodate the salient features of location determinants. This study examines the facility location problem for the U.S. fresh produce supply chain. We present a model that incorporates an empirical scenario into a facility location problem in order to capture much of the information required to make an optimal location decision. Our results suggest that the reliability of facility locations can be improved without significantly increasing the operating costs. This study sheds light on how the application of complementary modeling approaches improves the effectiveness of facility location solutions.

Authors: Houtian Ge, Stephan J. Goetz, Rebecca Cleary, Jing Yi, Miguel Gómez

Publication: International Journal of Production Economics Date Published: July 1, 2022

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