IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v38y2014i1p105-118.html
   My bibliography  Save this article

An econometric approach for evaluating the linkages between broadband and knowledge intensive firms

Author

Listed:
  • Mack, Elizabeth A.
  • Rey, Sergio J.

Abstract

In addition to highlighting improvements in the availability and speed of broadband as a national priority, the National Broadband Plan also includes several recommendations for improving access and use of broadband by small businesses. The plan also recommends economic development officials include broadband in their local development strategies. While these are certainly import goals, more research is needed to evaluate how broadband impacts the regional business environment, and regional capacity to retain and attract businesses in particular industries. In order to further our understanding about the linkages between broadband and businesses, and the ability of places to retain and attract businesses in particular industries, this study will develop and estimate econometric models to better understand the linkages between broadband and firms in the knowledge intensive sector. Specifically, 54 metropolitan area specific models will be developed to examine regional variations in the linkages between broadband and firms in the knowledge intensive sector in 2004. Model results highlight the importance of broadband to knowledge firms in all but five metropolitan areas across the U.S. They also reveal variations in the impact of broadband on knowledge firm presence related to metropolitan area size and industrial legacy.

Suggested Citation

  • Mack, Elizabeth A. & Rey, Sergio J., 2014. "An econometric approach for evaluating the linkages between broadband and knowledge intensive firms," Telecommunications Policy, Elsevier, vol. 38(1), pages 105-118.
    • Handle: RePEc:eee:telpol:v:38:y:2014:i:1:p:105-118
    DOI: 10.1016/j.telpol.2013.06.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596113000992
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2013.06.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
    2. Gillett, Sharon E. & Lehr, William H. & Osorio, Carlos, 0. "Local government broadband initiatives," Telecommunications Policy, Elsevier, vol. 28(7-8), pages 537-558, August.
    3. Pontikakis, Dimitrios & Collins, Patrick, 2010. "Exploring geographic variation in corporate broadband adoption; evidence from Irish small- and medium-sized enterprises (SMEs)," Telecommunications Policy, Elsevier, vol. 34(3), pages 144-161, April.
    4. Jungyul Sohn & Tschangho John Kim & Geoffrey J.D. Hewings, 2005. "Information technology and urban spatial structure: A comparative analysis of the Chicago and Seoul regions," Advances in Spatial Science, in: Harry W. Richardson & Chang-Hee Christine Bae (ed.), Globalization and Urban Development, pages 273-288, Springer.
    5. Gaspar, Jess & Glaeser, Edward L., 1998. "Information Technology and the Future of Cities," Journal of Urban Economics, Elsevier, vol. 43(1), pages 136-156, January.
    6. Kelejian, Harry H. & Prucha, Ingmar R., 2010. "Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances," Journal of Econometrics, Elsevier, vol. 157(1), pages 53-67, July.
    7. Tony H. Grubesic & Alan T. Murray, 2002. "Constructing the divide: Spatial disparities in broadband access," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(2), pages 197-221.
    8. Kelejian, Harry H. & Prucha, Ingmar R., 2007. "HAC estimation in a spatial framework," Journal of Econometrics, Elsevier, vol. 140(1), pages 131-154, September.
    9. Strover, Sharon, 2001. "Rural internet connectivity," Telecommunications Policy, Elsevier, vol. 25(5), pages 331-347, June.
    10. Kolko, Jed, 2012. "Broadband and local growth," Journal of Urban Economics, Elsevier, vol. 71(1), pages 100-113.
    11. David Gibbs & Keith Tanner, 1997. "Information and Communication Technologies and Local Economic Development Policies: The British Case," Regional Studies, Taylor & Francis Journals, vol. 31(8), pages 765-774.
    12. Grubesic, Tony H., 2006. "A spatial taxonomy of broadband regions in the United States," Information Economics and Policy, Elsevier, vol. 18(4), pages 423-448, November.
    13. Ivan T. Kandilov & Mitch Renkow, 2010. "Infrastructure Investment and Rural Economic Development: An Evaluation of USDA's Broadband Loan Program," Growth and Change, Wiley Blackwell, vol. 41(2), pages 165-191, June.
    14. S. K. Majumdar & O. Carare & H. Chang, 2010. "Broadband adoption and firm productivity: evaluating the benefits of general purpose technology," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(3), pages 641-674, June.
    15. repec:rre:publsh:v:37:y:2007:i:1:p:5-27 is not listed on IDEAS
    16. Elizabeth A. Mack & Luc Anselin & Tony H. Grubesic, 2011. "The importance of broadband provision to knowledge intensive firm location," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(1), pages 17-35, March.
    17. LaRose, Robert & Gregg, Jennifer L. & Strover, Sharon & Straubhaar, Joseph & Carpenter, Serena, 0. "Closing the rural broadband gap: Promoting adoption of the Internet in rural America," Telecommunications Policy, Elsevier, vol. 31(6-7), pages 359-373, July.
    18. Hanna Maoh & Pavlos Kanaroglou, 2007. "Geographic clustering of firms and urban form: a multivariate analysis," Journal of Geographical Systems, Springer, vol. 9(1), pages 29-52, April.
    19. Elizabeth A. Mack & Tony H. Grubesic, 2009. "Broadband Provision And Firm Location In Ohio: An Exploratory Spatial Analysis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(3), pages 298-315, July.
    20. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    21. Holt, Lynne & Jamison, Mark, 0. "Broadband and contributions to economic growth: Lessons from the US experience," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 575-581, November.
    22. Grubesic, Tony H., 2008. "Zip codes and spatial analysis: Problems and prospects," Socio-Economic Planning Sciences, Elsevier, vol. 42(2), pages 129-149, June.
    23. Leslie, Stuart W. & Kargon, Robert H., 1996. "Selling Silicon Valley: Frederick Terman's Model for Regional Advantage," Business History Review, Cambridge University Press, vol. 70(4), pages 435-472, January.
    24. Forman, Chris & Goldfarb, Avi & Greenstein, Shane, 2005. "How did location affect adoption of the commercial Internet? Global village vs. urban leadership," Journal of Urban Economics, Elsevier, vol. 58(3), pages 389-420, November.
    25. Michael Carroll & Neil Reid & Bruce Smith, 2008. "Location quotients versus spatial autocorrelation in identifying potential cluster regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 449-463, June.
    26. Edward E Leamer & Michael Storper, 2001. "The Economic Geography of the Internet Age," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(4), pages 641-665, December.
    27. Ivonne Audirac, 2005. "Information Technology and Urban Form: Challenges to Smart Growth," International Regional Science Review, , vol. 28(2), pages 119-145, April.
    28. Tony H. Grubesic & Alan T. Murray, 2004. "Waiting for Broadband: Local Competition and the Spatial Distribution of Advanced Telecommunication Services in the United States," Growth and Change, Wiley Blackwell, vol. 35(2), pages 139-165, March.
    29. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    30. Koutroumpis, Pantelis, 2009. "The economic impact of broadband on growth: A simultaneous approach," Telecommunications Policy, Elsevier, vol. 33(9), pages 471-485, October.
    31. Massoud Karshenas & Paul L. Stoneman, 1993. "Rank, Stock, Order, and Epidemic Effects in the Diffusion of New Process Technologies: An Empirical Model," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 503-528, Winter.
    32. Grubesic, Tony H., 0. "Spatial dimensions of Internet activity," Telecommunications Policy, Elsevier, vol. 26(7-8), pages 363-387, August.
    33. Roberta Capello, 1994. "Towards New Industrial And Spatial Systems: The Role Of New Technologies," Papers in Regional Science, Wiley Blackwell, vol. 73(2), pages 189-208, April.
    34. Shawn Banasick & Ge Lin & Robert Hanham, 2009. "Deviance Residual Moran's I Test and Its Application to Spatial Clusters of Small Manufacturing Firms in Japan," International Regional Science Review, , vol. 32(1), pages 3-18, January.
    35. Matthew A. Zook, 2002. "Hubs, nodes and by–passed places: a typology of e–commerce regions in the United States," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 93(5), pages 509-521, December.
    36. Falch, Morten & Henten, Anders, 2010. "Public private partnerships as a tool for stimulating investments in broadband," Telecommunications Policy, Elsevier, vol. 34(9), pages 496-504, October.
    37. Luc Anselin & Harry H. Kelejian, 1997. "Testing for Spatial Error Autocorrelation in the Presence of Endogenous Regressors," International Regional Science Review, , vol. 20(1-2), pages 153-182, April.
    38. Chris Forman, 2005. "The Corporate Digital Divide: Determinants of Internet Adoption," Management Science, INFORMS, vol. 51(4), pages 641-654, April.
    39. David M. Drukker & Ingmar Prucha & Rafal Raciborski, 2013. "A command for estimating spatial-autoregressive models with spatial-autoregressive disturbances and additional endogenous variables," Stata Journal, StataCorp LP, vol. 13(2), pages 287-301, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:asg:wpaper:1025 is not listed on IDEAS
    2. Elizabeth A. Mack & Luc Anselin & Tony H. Grubesic, 2011. "The importance of broadband provision to knowledge intensive firm location," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(1), pages 17-35, March.
    3. repec:asg:wpaper:1019 is not listed on IDEAS
    4. Elizabeth A. Mack, 2014. "Broadband and knowledge intensive firm clusters: Essential link or auxiliary connection?," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 3-29, March.
    5. Philip Chen & Edward J Oughton & Pete Tyler & Mo Jia & Jakub Zagdanski, 2020. "Evaluating the impact of next generation broadband on local business creation," Papers 2010.14113, arXiv.org.
    6. Elizabeth Mack & Alessandra Faggian, 2013. "Productivity and Broadband," International Regional Science Review, , vol. 36(3), pages 392-423, July.
    7. Elizabeth A. Mack, 2015. "Variations in the Broadband-Business Connection across the Urban Hierarchy," Growth and Change, Wiley Blackwell, vol. 46(3), pages 400-423, September.
    8. Elizabeth A. Mack & Tony H. Grubesic, 2009. "Broadband Provision And Firm Location In Ohio: An Exploratory Spatial Analysis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(3), pages 298-315, July.
    9. Brian Whitacre & Roberto Gallardo & Sharon Strover, 2014. "Does rural broadband impact jobs and income? Evidence from spatial and first-differenced regressions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 649-670, November.
    10. Mack, Elizabeth A. & Wentz, Elizabeth, 2017. "Industry variations in the broadband business nexus," Socio-Economic Planning Sciences, Elsevier, vol. 58(C), pages 51-62.
    11. Margarita Billon & Roberto Ezcurra & Fernando Lera‐López, 2009. "Spatial Effects in Website Adoption by Firms in European Regions," Growth and Change, Wiley Blackwell, vol. 40(1), pages 54-84, March.
    12. Daire McCoy & Sean Lyons & Edgar Morgenroth & Donal Palcic & Leonie Allen, 2018. "The impact of broadband and other infrastructure on the location of new business establishments," Journal of Regional Science, Wiley Blackwell, vol. 58(3), pages 509-534, June.
    13. Mack, Elizabeth A. & Maciejewski, Ross, 2015. "A profile of visual analytical toolkits for understanding the spatio-temporal evolution of broadband provision," Telecommunications Policy, Elsevier, vol. 39(3), pages 320-332.
    14. Amir Manzoor, 2014. "Investigating the Factors Affecting Residential Consumer Adoption of Broadband in India," SAGE Open, , vol. 4(4), pages 21582440145, October.
    15. repec:oup:ajagec:v:99:y:2017:i:1:p:1-18. is not listed on IDEAS
    16. Calvin Jones & Dylan Henderson, 2019. "Broadband and uneven spatial development: The case of Cardiff City-Region," Local Economy, London South Bank University, vol. 34(3), pages 228-247, May.
    17. Deller, Steven & Whitacre, Brian, 2018. "Broadband’s Relationship to Rural Housing Values," Staff Paper Series 591, University of Wisconsin, Agricultural and Applied Economics.
    18. Elizabeth A. Mack & Tony H. Grubesic, 2014. "US broadband policy and the spatio-temporal evolution of broadband markets," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 291-308, August.
    19. Mack, Elizabeth A. & Grubesic, Tony H., 2009. "Forecasting broadband provision," Information Economics and Policy, Elsevier, vol. 21(4), pages 297-311, November.
    20. Dinterman, Robert & Renkow, Mitch, 2017. "Evaluation of USDA's Broadband Loan Program: Impacts on broadband provision," Telecommunications Policy, Elsevier, vol. 41(2), pages 140-153.
    21. Stockinger, Bastian, 2017. "The effect of broadband internet on establishments' employment growth: evidence from Germany," IAB-Discussion Paper 201719, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    22. Ganuza, Juan José & Viecens, María Fernanda, 2011. "Deployment of high-speed broadband infrastructures during the economic crisis. The case of Xarxa Oberta," Telecommunications Policy, Elsevier, vol. 35(9), pages 857-870.
    23. Oliviero A. Carboni, 2013. "Investment in Information and Communication Technologies (ICT): The Role of Geographic Distance and Industry Proximity," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 191-212, Winter.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:38:y:2014:i:1:p:105-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.