Assessing the effect of rural industrial integration on rural innovation and entrepreneurship in China

Introduction Rural innovation and entrepreneurship is a key initiative to promote rural revitalization, enhance farmers' incomes, and promote the coordinated development of urban and rural areas. However, existing research lacks consideration of the relationship between rural industrial integration and rural innovation and entrepreneurship. This study empirically investigates the influence and internal mechanism of rural industrial integration on the development of rural innovation and entrepreneurship. Methods Panel data from 1,759 counties in 26 provinces in China, spanning from 2014 to 2021, is analyzed using a dual machine learning (DML) model. Results The findings indicate that the integration of rural industries plays a key role in promoting the growth of rural innovation and entrepreneurship. This conclusion remains valid even after conducting a series of rigorous tests to ensure its reliability. Analysis of the mechanism reveals that the integration of rural industries might stimulate innovation and entrepreneurship in the agricultural and industrial sectors by fostering economic concentration. The heterogeneity results suggest that the impact of rural industrial integration on empowering rural innovation and entrepreneurship development is stronger in areas with high facility agriculture and a high agricultural base, compared to areas with low facility agriculture and a low agricultural base. Discussion Overall, this study derives a comprehensive theoretical framework of “foundation-dependency”, suggesting that sustainable rural development follows a sequential logic where consolidating the agricultural foundation is a prerequisite for unlocking the full potential of industrial integration. This paper proposes policy proposals to expedite the advancement of rural industrial integration, foster economic concentration, and execute customized solutions based on local circumstances, aiming to offer guidance for achieving rural regeneration.