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Location of New Industries – The ICT-Sector 1990-2000

  • Johansson, Börje

    ()

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Paulsson, Thomas

    ()

    (http://www.infra.kth.se/cesis)

The overall purpose of this work is to study the location pattern of new industries and how it changes over time. With this objective as motivation, a set of 27 industries are classified as belonging to the ICT-sector (information and communication technology). The goods and services supplied by these industries were to a large extent new at the end of the 1980s. The paper outlines two interrelated models of vertical externalities to explain the location pattern of the industries in 1990 and 2000. The two externalities concern a firm’s input demand and its output demand. These models are introduced to illustrate how these externalities favour location in the largest functional urban regions. The same models predict that location in smaller regions is facilitated as demand grows, when internal scale economies (start-up costs) are not too strong. The empirical analyses apply a logit model to estimate location probabilities, which depend on the size and the diversity of a region’s econom

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Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 7.

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Length: 25 pages
Date of creation: 23 Nov 2004
Date of revision:
Handle: RePEc:hhs:cesisp:0007
Contact details of provider: Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/

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  1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  2. Charlie Karlsson, 1997. "Product development, innovation networks, infrastructure and agglomeration economies," The Annals of Regional Science, Springer, vol. 31(3), pages 235-258.
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