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Broadband and knowledge intensive firm clusters: Essential link or auxiliary connection?

Author

Listed:
  • Mack, Elizabeth A.

Abstract

This study evaluates the relationship between the spatial distribution of broadband providers and the presence of knowledge intensive firm clusters in US counties. Results highlight this relationship is heterogeneous and localized. In some places, broadband appears to be an essential link that enables knowledge firms to strategically locate in lower cost counties and in close proximity to major knowledge centres. In other places, the availability of broadband Internet connections are unable the negative externalities associated with locations in more remote areas of the country. From a policy perspective, this suggests that broadband should be viewed as a key component, but not the only component, of comprehensive local economic development plans.

Suggested Citation

Handle: RePEc:eee:paresc:v:93:y:2014:i:1:p:3-30
DOI: 10.1111/j.1435-5957.2012.00461.x
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JEL classification:

  • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
  • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
  • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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