Inside the Internet Industry: The Importance of Proximity in Accessing Knowledge in the Agglomeration of Internet Firms in Stockholm

Abstract

This paper deals with the question of agglomeration of economic of activities and the internet industry in Stockholm, Sweden. The paper discusses the importance of proximity, especially in the knowledge transmission, and uses a theoretical framework of localized and tacit knowledge. The empirical findings suggests that firms within the internet industry are located in close proximity to each other because of the importance of dense informal interpersonal networks, that facilitate the search for new customers and collaborators. The findings also stress the importance of proximity in creating these dense networks and being in the right place at the right time.