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What Do IT-Intensive Industries Look Like? 

What Do IT-Intensive Industries Look Like? 

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We provide a framework and evidence to confront two questions: Does the location of an establishment shape its adoption of different complex Internet applications even when controlling for an industry's features? If location does matter, what features in an industry shape whether Internet adoption follows a pattern consistent with the urban leaders...

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Context 1
... Table 1, we show the results of these regressions. ...
Context 2
... Table 1, we show how industry characteristics and geographic location influence the rate with which industries adopted enhancement. Columns 1 through 3 show our baseline OLS estimates of Equation (3). ...
Context 3
... results of Table 1 strongly reject the null that location has no effect on enhancement adoption. A regional effect is significant in six of the nine columns. ...

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... Second, we can turn to the economic implications of this gap. For example, Forman and Goldfarb [29] have proposed two alternative theories of the relationship between urbanization and the spread of ICT: (1) the global village theory, according to which isolated settlements are more interested in using electronic communication channels and, therefore, will adopt them faster; (2) urban leadership theory, which, in turn, suggests that high population density creates favorable externalities in favor of earlier adoption of new technologies in cities. In order to assess the relevance of the both interpretations, we also looked at the share of the urban population in the region as an additional social moderator. ...
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... Social capital can also accrue through geographic proximity to other organizations, enabling knowledge spillovers, because colocated organizations are easily "connected" to each other through frequent social interactions, observations, and communications (e.g., Forman et al. 2005aForman et al. , 2005b. Also, the pooled labor market and informal social interactions between employees of different organizations enhance the connections between the colocated organizations. ...
... In the existing literature, many scholars have focused on R&D and new technology ( [7] Audretsch and Feldman, 1996; [8] Bertscheck and Fryges, 2002; [9] Chang and Oxley, 2009). Some scholars have examined the relationship between internet intensity and urbanization economics ( [10][11][12] Forman et al. (2005a, b, c), [13] Goldfarb and Prince (2008), [14] Baptista and Swann (1998)), as well as a link between computers and productivity ( [15] Atrostic and Nguyen, 2005). However, there has been little research undertaken on the relationship between internet intensity and industrial penetration. ...
... For traditional industries, such as (15) The effect of degree of industrial concentration (HH I j ) in terms of whether manufacturers will use the internet is different across 2-digit industries. In terms of traditional industries, such as (11) Textiles Mills, (15) Pulp, Paper and Paper Products, (23) Non-metallic Mineral Products, (32) Furniture, technology-intensive industries, such as (29) Machinery and Equipment, and basic industries, such as (22) Plastic Products, when the degree of industrial concentration increases, manufacturers will be more inclined to use the internet. On the contrary, in the case of traditional industries, such as (08) Food, (12) Wearing Apparel and Clothing Accessories, (13) Leather, Fur and Related Products, and basic industries, such as (25) Fabricated Metal Products, when the degree of industrial concentration decreases, manufacturers will be more likely to use the internet. ...
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... Community size indicates whether an organization is located in an urban or rural area (Kimberly and Evanisko 1981;Mohr 1969). The urban leadership hypothesis (Forman et al. 2005) suggests that urban organizations will be more likely to be able adopt technological innovations, based on a well-developed Internet infrastructure that includes broadband access. Alternatively, Internet providers have been less willing to lay down the infrastructure to support broadband connections in rural settings with low population densities. ...
... While some studies have begun to unravel the link between ICTs and urban spatial structure (Sohn et al. 2002), there is a tremendous amount of uncertainty about the impact of broadband on regional economies. Not only are broadband data difficult to obtain, but the distribution of this infrastructure is highly uneven (Moss and Townsend 2000;Gorman 2002;National Broadband Map 2011), as is the adoption of ICTs by firms (Karshenas and Stoneman 1993;Sadowski et al. 2002;Forman et al. 2005aForman et al. , 2005b. ...
... Studies show industry level variations in the use of these technologies (Forman et al. 2005a) as well as differential adoption rates related to business size (Karshenas and Stoneman 1993; Gibbs and Tanner 1997;Forman 2005). Adoption studies also suggest business impacts may be related to the standardization of activities within firms (Atkinson 1998;McCann and Shefer 2004;Mudambi 2008) and their reliance on face-to-face contacts (Gaspar and Glaeser 1998;Moss 1998;Leamer and Storper 2001;Steinfield 2004). ...
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... proximity may be important for accessing the human capital embodied in university graduates who may serve as a spillover mechanism (see also Czarnitzki and Hotten rott, 2009 ). Second, taking broadband as a virtual marketplace and an infrastructure for customer contact, its roll-out and the increase of quality is a requirement for firm formations. Forman et al. (2005) show that in particular IT-producing industries' success less depends on local drivers. In contrast, IT-using industries are more sensitive to local cost drivers and regional coverage. ...
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