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How did Location Affect Adoption of the Commercial Internet? Global Village, Urban Density, and Industry Composition

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  • Chris Forman
  • Avi Goldfarb
  • Shane Greenstein

Abstract

The authors test opposing theories on how urban locations influenced the diffusion of Internet technology. They find evidence that, controlling for industry, participation in the Internet is more likely in rural areas than in urban areas. Nevertheless, talk of the dissolution of cities is premature. Frontier Internet technologies appear more often at establishments in urban areas, even with industry controls. Major urban areas also contain many establishments from information technology-intensive industries, whose presence could reinforce the concentration of frontier Internet technologies in these areas. However, information technology-intensive industries are numerous and widespread. Hence, so is the use of frontier technology.

Suggested Citation

  • Chris Forman & Avi Goldfarb & Shane Greenstein, 2003. "How did Location Affect Adoption of the Commercial Internet? Global Village, Urban Density, and Industry Composition," NBER Working Papers 9979, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:9979
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    Cited by:

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    2. Partridge, Mark D. & Rickman, Dan S. & Ali, Kamar & Olfert, M. Rose, 2010. "Recent spatial growth dynamics in wages and housing costs: Proximity to urban production externalities and consumer amenities," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 440-452, November.
    3. Yu Sun & Xingxuan Kuang & Dazhi Sun, 2016. "The geographic concentration of China’s e-business enterprises: where they gather and why," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(1), pages 31-42, February.
    4. Giuliana Battisti & Heinz Hollenstein & Paul Stoneman & Martin Woerter, 2007. "Inter And Intra Firm Diffusion Of Ict In The United Kingdom (Uk) And Switzerland (Ch) An Internationally Comparative Study Based On Firm-Level Data," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(8), pages 669-687.
    5. Jordi Pons-Novell & Elisabet Viladecans-Marsal, "undated". "Cities and the internet: The end of distance?," Studies on the Spanish Economy 198, FEDEA.
    6. Chris Forman, 2005. "The Corporate Digital Divide: Determinants of Internet Adoption," Management Science, INFORMS, vol. 51(4), pages 641-654, April.
    7. Bhadra, Dipasis & Kee, Jacqueline, 2008. "Structure and dynamics of the core US air travel markets: A basic empirical analysis of domestic passenger demand," Journal of Air Transport Management, Elsevier, vol. 14(1), pages 27-39.
    8. Danielle Galliano & Pascale Roux, 2006. "Les inégalités spatiales dans l'usage des tic. Le cas des firmes industrielles françaises," Revue économique, Presses de Sciences-Po, vol. 57(6), pages 1449-1475.
    9. Sinai, Todd & Waldfogel, Joel, 2004. "Geography and the Internet: is the Internet a substitute or a complement for cities?," Journal of Urban Economics, Elsevier, vol. 56(1), pages 1-24, July.
    10. Battisti, Giuliana & Canepa, Alessandra & Stoneman, Paul, 2009. "e-Business usage across and within firms in the UK: profitability, externalities and policy," Research Policy, Elsevier, vol. 38(1), pages 133-143, February.
    11. Paul A. David, 2015. "Zvi Griliches and the Economics of Technology Diffusion: Linking innovation adoption, lagged investments, and productivity growth," Discussion Papers 15-005, Stanford Institute for Economic Policy Research.
    12. Betsey Stevenson, 2009. "The Internet and Job Search," NBER Chapters, in: Studies of Labor Market Intermediation, pages 67-86, National Bureau of Economic Research, Inc.
    13. Battisti, Giuliana & Stoneman, Paul, 2005. "The intra-firm diffusion of new process technologies," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 1-22, February.
    14. Neokosmidis, Ioannis & Avaritsiotis, Nikolaos & Ventoura, Zoe & Varoutas, Dimitris, 2015. "Assessment of the gap and (non-)Internet users evolution based on population biology dynamics," Telecommunications Policy, Elsevier, vol. 39(1), pages 14-37.

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    JEL classification:

    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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