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ICT, Functional Urban Regions and the New Economic Geography

Author

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  • Karlsson, Charlie

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

Abstract

The rapid developments in information and communication technologies (ICT) and the increased use of ICT motivate the vision of an evolving digital economy. During the last decade this evolving digital economy has been the pre-eminent driver of structural change and economic growth at both the national and the regional level in the developed, industrialised economies. The reason is, of course, that ICT functions as a new generic technology, which impacts society both broadly and deeply. ICT has, in essence, destabilised the near equilibrium conditions of an earlier time and contributed to conditions of greater disequilibrium. Thus, one major implication of ICT is that it has created prime conditions for entrepreneurial discovery and action. This implies that there are strong motives to study various aspects of the digital economy, since ICT continues to penetrate the developed economies also after the burst of the ICT stimulated stock market bubble. In this paper we analyse one aspect of the digital economy, namely its effect of the system of functional urban regions. The motivation for this focus is that ICT offers new tools to organise information and enables major reductions in geographical transaction costs, the full implications of which is not yet well understood.

Suggested Citation

  • Karlsson, Charlie, 2004. "ICT, Functional Urban Regions and the New Economic Geography," Working Paper Series in Economics and Institutions of Innovation 14, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0014
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    More about this item

    Keywords

    ICT; Digital Economy; Functional Urban Regions; New Economic Geography; Geographical Transaction Cost;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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