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Abstract
A live issue currently in eonomic development relates to the importance of city-regional business environments for the growth and competitiveness of internet-related industries. Drawing on theories of regional innovation systems, this study evaluates the importance of place-related factors in the development of internet firms in two UK city-regions. The findings highlight the importance of demand economies, external networks, key local firms and individuals, and government research expenditure. Institutional arguments about local-regional systems are not drivers for growth, but play a more complex role in shaping knowledge and technological infrastructure.
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