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

48 Pages Posted: 26 Sep 2003 Last revised: 27 Oct 2015

See all articles by Chris Forman

Chris Forman

Cornell University - Dyson School of Applied Economics and Management; Georgia Institute of Technology - Scheller College of Business

Shane M. Greenstein

Harvard University - Technology & Operations Management Unit; National Bureau of Economic Research (NBER)

Avi Goldfarb

University of Toronto - Rotman School of Management

Date Written: September 2003

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

Forman, Chris and Greenstein, Shane M. and Goldfarb, Avi, How Did Location Affect Adoption of the Commercial Internet? Global Village, Urban Density, and Industry Composition (September 2003). NBER Working Paper No. w9979. Available at SSRN: https://ssrn.com/abstract=447267

Chris Forman

Cornell University - Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

Shane M. Greenstein (Contact Author)

Harvard University - Technology & Operations Management Unit ( email )

Boston, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Avi Goldfarb

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
416-946-8604 (Phone)
416-978-5433 (Fax)

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