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Internet Cluster Emergence

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  • Danny Quah

Abstract

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.

Suggested Citation

  • Danny Quah, 2000. "Internet Cluster Emergence," CEP Discussion Papers dp0441, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp0441
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    File URL: http://cep.lse.ac.uk/pubs/download/DP0441.pdf
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    References listed on IDEAS

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    Citations

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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, pages 381-404.
    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. 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.
    8. Jung, Juan, 2014. "Regional inequalities in the impact of broadband on productivity: Evidence from Brazil," MPRA Paper 56177, University Library of Munich, Germany.
    9. Yannis Ioannides, 2006. "Topologies of social interactions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), pages 559-584.
    10. 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.
    11. Orlando Gomes, 2004. "Location Dynamics and Knowledge Agglomeration," Urban/Regional 0409012, EconWPA.
    12. Danny Quah, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEP Discussion Papers dp0522, Centre for Economic Performance, LSE.
    13. 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.
    14. 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.

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