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The Dot-Com Boom and Bust in the Context of Regional and Sectoral Changes


  • Cynthia Kroll
  • Diana Lee
  • Nadir Shams


This paper examines the effects of the dot-com boom and bust on firm survival, migration and growth in other sectors. Dot-com expansion revived a slowing central city economy but also raised issues regarding displacement of manufacturing, distribution, social services and other non-profits from San Francisco's “South of Market”. This study uses the National Establishment Time Series (NETS) database to examine how the growth of dot-com businesses affected San Francisco and surrounding counties. We find that start-ups were central to San Francisco's job growth. Relocations also were a significant aspect of job change. Dot-com growth was positively associated with propensity for pre-boom information and professional services establishments and for non-high-tech manufacturing or distribution establishments to move, while arts, social services and non-profits remained in the city.

Suggested Citation

  • Cynthia Kroll & Diana Lee & Nadir Shams, 2010. "The Dot-Com Boom and Bust in the Context of Regional and Sectoral Changes," Industry and Innovation, Taylor & Francis Journals, vol. 17(1), pages 49-69.
  • Handle: RePEc:taf:indinn:v:17:y:2010:i:1:p:49-69
    DOI: 10.1080/13662710903573836

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