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How did Location Affect Adoption of the Commercial Internet? Global Village, Urban Density, and Industry Composition

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Author Info
Chris Forman
Avi Goldfarb
Shane Greenstein

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Abstract

The authors test opposing theories on how urban locations influenced the diffusion of Internet technology. They find evidence that, controlling for industry, participation in the Internet is more likely in rural areas than in urban areas. Nevertheless, talk of the dissolution of cities is premature. Frontier Internet technologies appear more often at establishments in urban areas, even with industry controls. Major urban areas also contain many establishments from information technology-intensive industries, whose presence could reinforce the concentration of frontier Internet technologies in these areas. However, information technology-intensive industries are numerous and widespread. Hence, so is the use of frontier technology.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9979.

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Date of creation: Sep 2003
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Handle: RePEc:nbr:nberwo:9979

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Find related papers by JEL classification:
L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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References listed on IDEAS
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.:
  1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January. [Downloadable!] (restricted)
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  2. Kolko, Jed, 2002. "Silicon mountains, silicon molehills: geographic concentration and convergence of internet industries in the US," Information Economics and Policy, Elsevier, vol. 14(2), pages 211-232, June. [Downloadable!] (restricted)
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  3. Hyunbae Chun, 2003. "Information Technology and the Demand for Educated Workers: Disentangling the Impacts of Adoption versus Use," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 1-8, November. [Downloadable!] (restricted)
  4. Beardsell, Mark & Henderson, Vernon, 1999. "Spatial evolution of the computer industry in the USA," European Economic Review, Elsevier, vol. 43(2), pages 431-456, February. [Downloadable!] (restricted)
  5. Sean P. Gorman, 2002. "Where are the Web factories: The urban bias of e-business location," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 93(5), pages 522-536, December. [Downloadable!] (restricted)
  6. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February. [Downloadable!] (restricted)
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  7. Austan Goolsbee & Peter J. Klenow, 1999. "Evidence on Learning and Network Externalities in the Diffusion of Home Computers," NBER Working Papers 7329, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Ireland, N & Stoneman, P, 1986. "Technological Diffusion, Expectations and Welfare," Oxford Economic Papers, Oxford University Press, vol. 38(2), pages 283-304, July. [Downloadable!] (restricted)
  9. Chris Forman & Avi Goldfarb & Shane Greenstein, 2002. "Digital Dispersion: An Industrial and Geographic Census of Commerical Internet Use," NBER Working Papers 9287, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
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  12. Forman, Christopher, 2002. "The Corporate Digital Divide: Determinants of Internet Adoption," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  13. Matthew A Zook, 2000. "The web of production: the economic geography of commercial Internet content production in the United States," Environment and Planning A, Pion Ltd, London, vol. 32(3), pages 411-426, March. [Downloadable!] (restricted)
  14. Sinai, Todd & Waldfogel, Joel, 2004. "Geography and the Internet: is the Internet a substitute or a complement for cities?," Journal of Urban Economics, Elsevier, vol. 56(1), pages 1-24, July. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Giuliana Battisti & Heinz Hollenstein & Paul Stoneman & Martin Woerter, 2005. "Inter and Intra firm Diffusion of ICT in the United Kingdom (UK) and Switzerland (CH) : An Internationally Comparative Study Based on Firm-level Data," KOF Working papers 05-111, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
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  2. Galliano, D. & Roux, P., 2005. "The evolution of the spatial digital divide : from internet adoption to internet use by french industrial firms," Economics Working Paper Archive (Toulouse) 200513, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse). [Downloadable!]
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  3. Jordi Pons-Novell & Elisabet Viladecans-Marsal, . "Cities and the internet: The end of distance?," Studies on the Spanish Economy 198, FEDEA. [Downloadable!]
  4. Betsey Stevenson, 2008. "The Internet and Job Search," NBER Working Papers 13886, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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