Digital Dispersion

In which metropolitan areas did businesses move to adopt the Internet most quickly? A July, 2003 research paper from Carnegie Mellon University, co-authored by Chris Forman, Avi Goldfarb and Shane Greenstein, explores the extent of commercial adoption of the Internet in the nation's 50 largest metropolitan areas. The paper -- "How did Location Affect Adoption of the Commercial Internet?-Global Village, Urban Density and Industry Composition" --explores the connection between industry composition and city size in explaining business use of the Internet.

2 minute read

November 5, 2004, 11:04 AM PST

By Chris Steins @planetizen


In which metropolitan areas did businesses move to adopt the Internet most quickly?



A July, 2003 research paper from Carnegie Mellon University, co-authored by Chris Forman, Avi Goldfarb and Shane Greenstein, explores the extent of commercial adoption of the Internet in the nation's 50 largest metropolitan areas.



The paper --

"How did Location Affect Adoption of the Commercial Internet?-Global Village, Urban Density and Industry Composition"
--explores the connection between industry composition and city size in explaining business use of the Internet.



Drawing on data from a private survey of businesses, they provide estimates of Internet adoption (basic Internet access for email and web-browsing) and enhancement (the deployment of e-business applications).



The abstract reads:


"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."



The paper is an interesting addition to the ongoing debate over whether "IT acts as a substitute or complement to the agglomeration of economic activity."



My vote goes for recognizing information technology as a complement and driver of the concentration of economic activity around a particular place.



(Thanks for EconData for the note.)


Chris Steins

Chris Steins is Planetizen's former Editor and the founder of Urban Insight, a leading digital agency. Chris has 25 years of experience in technology consulting and urban planning and has served as a consultant to public sector state, county, and local agencies, Fortune 500 private firms, educational institutions, and nonprofit organizations.

courses user

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges. Corey D, Transportation Planner

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges.

Corey D, Transportation Planner

Ready to give your planning career a boost?

MARTA train tracks run in the middle of a six lane highway with an overpass and the Buckhead city skyline of skyscrapers in the background.

How Would Project 2025 Affect America’s Transportation System?

Long story short, it would — and not in a good way.

September 29, 2024 - Marcelo Remond

People in large plaza in front of Zurich Opera House in Switzerland.

But... Europe

European cities and nations tend to have less violent crime than the United States. Is government social welfare spending the magic bullet that explains this difference?

September 26, 2024 - Michael Lewyn

Aerial view of low-rise neighborhood in Los Angeles, California.

California Law Ends Road Widening Mandates

Housing developers will no longer be required to dedicate land to roadway widening, which could significantly reduce the cost of construction and support more housing units.

September 25, 2024 - Streetsblog California

Rendering of aerial view of expanded Exposition Park in central Los Angeles with multiple sports stadiums and park facilities.

Exposition Park’s $351.5 Million Transformation

This revitalization will create vital green spaces, improve accessibility, and enhance connections with community, making Exposition Park a central hub for recreation and culture in Los Angeles.

6 hours ago - Los Angeles Times

Flock of white snow geese flying and resting in water in Sacramento River delta at sunset.

California Secures $360 Million in Federal Funding for Parks, Habitat Restoration, and Clean Transportation

This funding will drive transformative projects across the state, improving access to green spaces, protecting natural ecosystems, and advancing sustainable transportation initiatives.

7 hours ago - Office of Governor Gavin Newsom

Sheep grazing in field with solar panels in background.

Herds of Sheep Manage Vegetation Where Powered Mowers Can’t

Cities are hiring grazing sheep to keep vegetation in check in sensitive sites and uneven terrain.

October 7 - Associated Press

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

New Updates on PD&R Edge

HUDs Office of Policy Development and Research

Regional Rail at Mpact Transit + Community 2024

Mpact (formerly Rail~Volution)

Cornell's Department of City and Regional Planning Announces Undergraduate and Graduate Program Information Sessions and Application Details

Cornell University's College of Architecture, Art, and Planning (AAP), the Department of City and Regional Planning (CRP)

Write for Planetizen