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Internet, adjustment of firms and the spatial division of labour

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  • Laaser, Claus-Friedrich

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  • Soltwedel, Rüdiger

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    Abstract

    The rise of the Internet has been heralded as the 'death of distance' that may eventually entail a 'decline of the city'. Whether or not these futuristic visions will materialize will depend upon how firms and industries react to the Internet as a general-purpose technology. Besides the locational choice of New Economy firms themselves it is the adoption of E-commerce in industries of the 'old' economy which has the potential for re-shaping the economic geography of regions, and which may, in many instances radically so, change the way to manage the internal organization of firms as well as relationships with business partners (B2B) and with consumers (B2C). The paper aims at discussing elements of a conceptual approach for evaluating these spatial effects of E-commerce activities on locational patterns in the old economy by identifying suitable proxy indicators from existing evidence, such as connectivity to IT-infrastructures, sectoral differences in B2B solutions, market (de-)concentration processes, or changes of functional employment structures of cities. Key words: Internet, E-commerce, Organizational Change, Firm Location, Spatial Division of Labour

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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p520.

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    Date of creation: Aug 2002
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    Handle: RePEc:wiw:wiwrsa:ersa02p520

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    1. Duranton, Gilles & Puga, Diego, 2001. "From Sectoral to Functional Urban Specialization," CEPR Discussion Papers 2971, C.E.P.R. Discussion Papers.
    2. Eric A. Nerlinger & Franz-Josef Bade, 2000. "The spatial distribution of new technology-based firms: Empirical results for West-Germany," Papers in Regional Science, Springer, vol. 79(2), pages 155-176.
    3. Bade, Franz-Josef & Niebuhr, Annekatrin & Schönert, Matthias, 2000. "Spatial structural change - evidence and prospects," HWWA Discussion Papers 87, Hamburg Institute of International Economics (HWWA).
    4. Jess Gaspar & Edward L. Glaeser, 1996. "Information Technology and the Future of Cities," Harvard Institute of Economic Research Working Papers 1756, Harvard - Institute of Economic Research.
    5. Gillian Bristow & Max Munday & Peter Gripaios, 2000. "Call centre growth and location: corporate strategy ;and the spatial division of labour," Environment and Planning A, Pion Ltd, London, vol. 32(3), pages 519-538, March.
    6. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
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