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Title:Technology adoption in and out of major urban areas: When do internal firm resources matter most? PDF Logo
Authors:Forman, Chris
Goldfarb, Avi
Greenstein, Shane M
Issue Date:2005
Series/Report no.:CSIO working paper 0070
Abstract:How much do internal firm resources contribute to technology adoption in major urban locations, where the advantages from agglomeration are greatest? The authors address this question in the context of a business's decision to adopt advanced Internet technology. Drawing on a rich data set of adoption decisions by 86,879 U.S. establishments, the authors find that the marginal contribution of internal resources to adoption is greater outside of a major urban area than inside one. Agglomeration is therefore less important for highly capable firms. The authors conclude that firms behave as if resources available in cities are substitutes for both establishment-level and firm-level internal resources.
JEL:R30
O33
L86
Document Type:Working Paper
Appears in Collections:CSIO Electronic Working Papers, Northwestern University

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