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Internet cluster emergence


  • Quah, Danny


Internet development holds the promise of transmitting economic value across physical space at zero marginal cost. In such a 'weightless economy', what factors matter for the location of economic activity and thus for economic development? This paper sketches a model of spatial dynamics over a three-dimensional globe, where transportation costs don't matter. The paper develops conditions under which clusters of activity emerge.
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Suggested Citation

  • Quah, Danny, 2000. "Internet cluster emergence," European Economic Review, Elsevier, vol. 44(4-6), pages 1032-1044, May.
  • Handle: RePEc:eee:eecrev:v:44:y:2000:i:4-6:p:1032-1044

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    References listed on IDEAS

    1. Futia, Carl A, 1982. "Invariant Distributions and the Limiting Behavior of Markovian Economic Models," Econometrica, Econometric Society, vol. 50(2), pages 377-408, March.
    2. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
    3. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
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    Cited by:

    1. Quah, Danny, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEPR Discussion Papers 3207, C.E.P.R. Discussion Papers.
    2. Quah, Danny, 2003. "Digital Goods and the New Economy," CEPR Discussion Papers 3846, C.E.P.R. Discussion Papers.
    3. Raphael Suire & Jérome Vicente, 2009. "Why do some places succeed when others decline? A social interaction model of cluster viability," Journal of Economic Geography, Oxford University Press, vol. 9(3), pages 381-404, May.
    4. Bischi, G.-I. & Dawid, H. & Kopel, M., 2003. "Gaining the competitive edge using internal and external spillovers: a dynamic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 27(11), pages 2171-2193.
    5. Koski, H. & Rouvinen, P. & Yla-Anttila, P., 2002. "ICT clusters in Europe The great central banana and the small Nordic potato," Information Economics and Policy, Elsevier, vol. 14(2), pages 145-165, June.
    6. Zakaria Babutsidze & Robin Cowan, 2014. "Showing or telling? Local interaction and organization of behavior," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(2), pages 151-181, October.
    7. Charles Ka Yui Leung & Nan-Kuang Chen, 2006. "Intrinsic Cycles of Land Price: A Simple Model," Journal of Real Estate Research, American Real Estate Society, vol. 28(3), pages 293-320.
    8. 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.
    9. Jung, Juan, 2014. "Regional inequalities in the impact of broadband on productivity: Evidence from Brazil," MPRA Paper 56177, University Library of Munich, Germany.
    10. Yannis Ioannides, 2006. "Topologies of social interactions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(3), pages 559-584, August.
    11. Jérome VICENTE (LEREPS-GRES) & Yan Dalla PRIA (CSO – CNRS) & Raphaël SUIRE (CREM – CNRS), 2006. "The Ambivalent Role of Mimetic Behaviors in Proximity Dynamics: Evidences on the French “Silicon Sentier”," Cahiers du GRES (2002-2009) 2006-02, Groupement de Recherches Economiques et Sociales.
    12. Gordon H. Hanson, 2000. "Scale Economies and the Geographic Concentration of Industry," NBER Working Papers 8013, National Bureau of Economic Research, Inc.
    13. Bellone Flora, 2005. "IT adoption and spatial agglomeration - a model of cumulative adoption in a small open economy," ERSA conference papers ersa05p731, European Regional Science Association.
    14. Quah, Danny, 2002. "Technology dissemination and economic growth: some lessons for the new economy," LSE Research Online Documents on Economics 2118, London School of Economics and Political Science, LSE Library.
    15. Orlando Gomes, 2004. "Location Dynamics and Knowledge Agglomeration," Urban/Regional 0409012, EconWPA.
    16. Danny Quah, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEP Discussion Papers dp0522, Centre for Economic Performance, LSE.
    17. Quah, Danny, 2003. "Digital goods and the new economy," LSE Research Online Documents on Economics 2236, London School of Economics and Political Science, LSE Library.
    18. Raphaël Suire & Jérome Vicente & Yan Dala Pria, 2006. "Why some clusters succeed whereas others decline ? Modelling the ambivalent stability properties of clusters," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 200619, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

    More about this item

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes


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