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Broadband Internet and new firm formation: a US perspective

In: Innovation and Entrepreneurship in the Global Economy

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  • Jitendra Parajuli
  • Kingsley E. Haynes

Abstract

Broadband internet is considered an important determinant of economic growth and development. A number of studies have examined the impact of broadband on migration, firm location and economic growth. However, the relationship between broadband infrastructure and new firm formation in the USA has not been sufficiently described. This chapter fills that gap by empirically examining the relationship between broadband internet and new firm formation. It is found that single-unit firm births and the provision of broadband are positively and significantly related across almost all industry sectors in the USA. However, the impact of broadband provisioning on new firm formation is sensitive to agglomeration and aggregate and growth patterns of states and economic sectors.

Suggested Citation

  • Jitendra Parajuli & Kingsley E. Haynes, 2015. "Broadband Internet and new firm formation: a US perspective," Chapters, in: Charlie Karlsson & Urban Gråsjö & Sofia Wixe (ed.), Innovation and Entrepreneurship in the Global Economy, chapter 9, pages 210-236, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:15906_9
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    1. Falk, Martin & Hagsten, Eva, 2021. "Impact of high-speed broadband access on local establishment dynamics," Telecommunications Policy, Elsevier, vol. 45(4).
    2. Prieger, James, 2023. "Local banking markets and barriers to entrepreneurship in minority and other areas: Does broadband availability help?," MPRA Paper 118102, University Library of Munich, Germany.

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