A Decade of Growth: The Emerging Geography of New Economy Industries in the 1990s

Abstract

Economic analysts have expressed significant interest in the transition of the industrial base towards knowledge-intensive production. A central aspect of this transition is the growth and development of industries that provide the technological and scientific foundations for what is often termed the New Economy. This paper explores the geographic structure of two innovative sectors: (1) information and communications technology (ICT) industries, and (2) science-based industries. ICT industries develop and support products that are at the heart of the technology revolution. Science-based industries make important contributions to systems of innovation via large investments in research and development (R&D) and human capital.

This empirical study develops a geographic profile of ICT and science-based industries in Canada. It investigates differences in the evolution of these industries across provincial boundaries, along the urban/rural hierarchy, and in different metropolitan areas. Patterns of ICT and science-based growth are examined by focusing on changes in employment intensity between 1990 and 2000. The paper also investigates why certain cities have enjoyed more intensive growth in their local ICT economies than other cities.

Keywords: information and communication technologies, rural areas, urban areas

JEL Classification: R1, R3, O3