Location of New Industries – The ICT-Sector 1990-2000
AbstractThe overall purpose of this work is to study the location pattern of new industries and how it changes over time. With this objective as motivation, a set of 27 industries are classified as belonging to the ICT-sector (information and communication technology). The goods and services supplied by these industries were to a large extent new at the end of the 1980s. The paper outlines two interrelated models of vertical externalities to explain the location pattern of the industries in 1990 and 2000. The two externalities concern a firm’s input demand and its output demand. These models are introduced to illustrate how these externalities favour location in the largest functional urban regions. The same models predict that location in smaller regions is facilitated as demand grows, when internal scale economies (start-up costs) are not too strong. The empirical analyses apply a logit model to estimate location probabilities, which depend on the size and the diversity of a region’s econom
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Bibliographic InfoPaper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 7.
Length: 25 pages
Date of creation: 23 Nov 2004
Date of revision:
Contact details of provider:
Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
More information through EDIRC
Location externalities; new industries; location dynamics; product cycles;
Find related papers by JEL classification:
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-12-02 (All new papers)
- NEP-BEC-2004-12-02 (Business Economics)
- NEP-ENT-2004-12-02 (Entrepreneurship)
- NEP-INO-2004-12-02 (Innovation)
- NEP-URE-2004-12-02 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Charlie Karlsson, 1997. "Product development, innovation networks, infrastructure and agglomeration economies," The Annals of Regional Science, Springer, vol. 31(3), pages 235-258.
- Paul M Romer, 1999.
"Endogenous Technological Change,"
Levine's Working Paper Archive
2135, David K. Levine.
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