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 Stines 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.

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

View of Washington state capitol dome in Olympia, Washington at golden hour.

Washington Legislature Passes Rent Increase Cap

A bill that caps rent increases at 7 percent plus inflation is headed to the governor’s desk.

2 hours ago - Washington State Standard

Low view of Glendale Narrows section of Los Angeles River with concrete bottom and cloudy storm sky over head.

From Planning to Action: How LA County Is Rethinking Climate Resilience

Chief Sustainability Officer Rita Kampalath outlines the County’s shift from planning to implementation in its climate resilience efforts, emphasizing cross-departmental coordination, updated recovery strategies, and the need for flexible funding.

3 hours ago - The Planning Report

Grandparents sitting on bench with young girl and boy, girl holding ball and boy holding ukelele.

New Mexico Aging Department Commits to Helping Seniors Age ‘In Place’ and ‘Autonomously’ in New Draft Plan

As New Mexico’s population of seniors continues to grow, the state’s aging department is proposing expanded initiatives to help seniors maintain their autonomy while also supporting family caregivers.

4 hours ago - Source NM