Digital platforms as a driver for the promotion of Italian Borghi

The role of digital platforms represents an important point of discussion among researchers, also considering the complexity of the social, managerial, and economic effects resulting from their diffusion.

A study conducted within PoliTO EIC - Entrepreneurship and Innovation Center fits into the landscape of research in this field and was recently published in the scientific journal “Strategic Entrepreneurship Journal” (Financial Times 50) issued by the Strategic Management Society. The study was prepared by professors Francesco Luigi Milone of the Interuniversity Department of Regional and Urban Studies and Planning (DIST), Emilio Paolucci and Elisabetta Raguseo of the Department of Management and Production Engineering (DIGEP), as one of the first works on the role that digital platforms play in entrepreneurial development in marginal areas, arguing that, under unfavorable economic conditions, such platforms effectively stimulate entrepreneurship.

The research team studied the effects deriving from Airbnb entering in the tourism offer of 270 Italian Borghi (villages in marginal areas of the Country), finding that, following the platform's entry, entrepreneurial activity in the villages significantly increases. Among the most significant results of the study, it emerges that Airbnb's penetration is associated with a growth of approximately 6% in entrepreneurial income. Furthermore, the analysis by Politecnico research team found that only "accessible" villages (i.e., close to main transport infrastructures) fully benefit from the platform's entry (+6.4%) and, above all, the platform's effect on local entrepreneurship is significant in 'low-income' villages (+8.7%). This highlights the importance of digital platforms as enablers of entrepreneurial activity in disadvantaged contexts. Finally, this effect was predominantly found among sectors linked to Airbnb's main activity (to cite some data from the study, the transport sector grows by about 8%, entertainment by 8.5%, small manufacturing by 3.8%, and hospitality in a broad sense by 4.2%). These positive impacts materialize in the absence of significant evidence of wealth concentration or measurable effects on the real estate market.

This study provides important implications for both entrepreneurs and policymakers who intend to incentivize the creation of new businesses in marginal and rural areas. Firstly, it highlights that, in marginal locations, digital platforms act as enablers for entrepreneurs who must face a complex and risky decision as undertaking new commercial activities. This happens because platforms create demand and reduce entry and management costs. Secondly, the study shows that digital platforms represent an indirect and effective way to pursue entrepreneurial - and economic - development in marginal areas, providing a valid alternative to direct approaches (such as subsidies for small business formation) which research has shown are not always effective.

"Quantitatively measuring the impact of technological innovations is an important task for understanding the socio-economic effects that arise from their diffusion," explains Francesco Luigi Milone. "PoliTO has an important role in research on innovation and the consequences that stem from it. We are pleased to have contributed, in particular, to the recent debate on short-term rentals with a new perspective that highlights their beneficial effects for marginal areas."