Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 7: Location of New Industries – The ICT-Sector 1990-2000

Börje Johansson () and Thomas Paulsson ()
Additional contact information
Börje Johansson: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Thomas Paulsson: http://www.infra.kth.se/cesis, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

Abstract: 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

Keywords: Location externalities; new industries; location dynamics; product cycles

JEL-codes: L14; O12; O18

25 pages, November 23, 2004

Full text files

cesiswp07.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:31:18.