Knowledge, Technology and Internationalization
New Horizons in Regional Science series
Edited by Charlie Karlsson, Urban Gråsjö and Sofia Wixe
Chapter 9: Broadband Internet and new firm formation: a US perspective
Broadband internet is considered an important determinant of economic growth and development. A number of studies have examined the impact of broadband on migration, firm location and economic growth. However, the relationship between broadband infrastructure and new firm formation in the USA has not been sufficiently described. This chapter fills that gap by empirically examining the relationship between broadband internet and new firm formation. It is found that single-unit firm births and the provision of broadband are positively and significantly related across almost all industry sectors in the USA. However, the impact of broadband provisioning on new firm formation is sensitive to agglomeration and aggregate and growth patterns of states and economic sectors.
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