The quantitative part of this book uncovers the relationship between demographic decline and digital innovation through different approaches. The multiple regression analysis reveals that depopulation and workforce aging are each negatively correlated with digital innovation levels in local governments, even when all controls are included. To address endogeneity, we created two groups that differed in their demographic conditions in the 2002–2019 period while ensuring similarity in various pre-treatment characteristics through propensity score matching and Mahalanobis distance matching. Both methods lend support to the hypothesis. These analyses are followed by comprehensive robustness checks that further confirm our findings while revealing new insights. Specifically, we found that depopulation and workforce aging are stronger predictors of digital innovation when it is operationalized exclusively in terms of digital public services and enabling platform integration. However, these indicators are not correlated with transparency and social media usage. As outlined in the discussion section, overall, the results align with existing literature and suggest that the availability of skilled human resources and the shifting priorities in the context of demographic decline contribute to lower digital innovation levels in local governments.