TY  - JOUR
AU  - Forman,Chris
AU  - Goldfarb,Avi
AU  - Greenstein,Shane
TI  - Technology Adoption In and Out of Major Urban Areas: When Do Internal Firm Resources Matter Most?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11642
PY  - 2005
Y2  - September 2005
UR  - http://www.nber.org/papers/w11642
L1  - http://www.nber.org/papers/w11642.pdf
N1  - Author contact info:
Chris Forman
Georgia Institute of Technology
Scheller College of Business
800 West Peachtree Street, NW
Atlanta
GA 30308
USA
E-Mail: chris.forman@scheller.gatech.edu

Avi Goldfarb
Rotman School of Management
University of Toronto
105 St George St
Toronto, ON M5S 3E6
E-Mail: agoldfarb@rotman.utoronto.ca

Shane Greenstein
The Elinor and Wendell Hobbs Professor
Kellogg School of Management
Northwestern University
2001 Sheridan Road
Evanston, IL  60208-2013
Tel: 847/467-5672
Fax: 847/467-1777
E-Mail: greenstein@kellogg.northwestern.edu
AB  - How much do internal firm resources contribute to technology adoption in major urban locations, where the advantages from agglomeration are greatest? The authors address this question in the context of a business's decision to adopt advanced Internet technology. Drawing on a rich data set of adoption decisions by 86,879 U.S. establishments, the authors find that the marginal contribution of internal resources to adoption is greater outside of a major urban area than inside one. Agglomeration is therefore less important for highly capable firms. The authors conclude that firms behave as if resources available in cities are substitutes for both establishment-level and firm-level internal resources.
ER  -