This chapter outlines the methodology and research design to investigate the effect of demographic decline on digital innovation, thoroughly explains the case selection, the variables employed, the estimation strategy, and the main limitations of our analysis, and provides descriptive statistics. This book focuses on 110 Italian municipalities. Italy provides a convenient context for this study due to the homogeneity of administrative functions and significant variations in demographic trends across municipal governments. We collected a wide variety of data to operationalize the phenomena of demographic decline and digital innovation. Specifically, our main dependent variable is the Ca.Re index: a multidimensional index that measures several aspects related to digital innovation, i.e., transparency, social media usage, digital public services, and enabling platform integration. The main independent variables consist of demographic indicators like population decline rate and workforce aging index, which measure, respectively, depopulation and aging. We also control for several geographic, financial, socio-economic, and administrative characteristics that may affect digital innovation at the municipal level. To test the hypothesis, we opted for multiple regression analyses followed by propensity score and Mahalanobis distance matching to address endogeneity concerns.