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This article provides a systematic review of the quantitative social science research on broadband Internet technology in rural areas. Specifically, we summarize the literature on 1) rural broadband availability and adoption behaviors and 2) the implications of these behaviors for rural businesses, public policy initiatives, and regional development. In the studies reviewed, rural areas suffer from both lower availability and lower adoption rates compared to their urban counterparts. However, researchers disagree on whether supply frictions inherent to rural areas or heterogeneous demand and adoption behaviors are the major cause of this outcome. Researchers widely agree that high-speed Internet improves economic outcomes of rural areas, whether it is through increases in business activity or in more general economic development measures (e.g. productivity, jobs, income). Impact evaluations of rural broadband policy initiatives produced mixed results, highlighting the need for a better understanding of agents' incentives. This review points to four areas for future research. One, assessments of the long-term impact of broadband on rural economies. Two, analyses of the net effect of broadband on economic development outcomes (e.g. migrants, job creation). Three, assessments of economic development impacts associated with broadband speed. Four, assessments of the efficacy of broadband policies. [ABSTRACT FROM AUTHOR]

This study evaluates the relationship between the spatial distribution of broadband providers and the presence of knowledge intensive firm clusters in US counties. Results highlight this relationship is heterogeneous and localized. In some places, broadband appears to be an essential link that enables knowledge firms to strategically locate in lower cost counties and in close proximity to major knowledge centres. In other places, the availability of broadband Internet connections are unable the negative externalities associated with locations in more remote areas of the country. From a policy perspective, this suggests that broadband should be viewed as a key component, but not the only component, of comprehensive local economic development plans. [ABSTRACT FROM AUTHOR]

Abstract: In addition to highlighting improvements in the availability and speed of broadband as a national priority, the National Broadband Plan also includes several recommendations for improving access and use of broadband by small businesses. The plan also recommends economic development officials include broadband in their local development strategies. While these are certainly import goals, more research is needed to evaluate how broadband impacts the regional business environment, and regional capacity to retain and attract businesses in particular industries. In order to further our understanding about the linkages between broadband and businesses, and the ability of places to retain and attract businesses in particular industries, this study will develop and estimate econometric models to better understand the linkages between broadband and firms in the knowledge intensive sector. Specifically, 54 metropolitan area specific models will be developed to examine regional variations in the linkages between broadband and firms in the knowledge intensive sector in 2004. Model results highlight the importance of broadband to knowledge firms in all but five metropolitan areas across the U.S. They also reveal variations in the impact of broadband on knowledge firm presence related to metropolitan area size and industrial legacy. [Copyright &y& Elsevier]

Information and communication technologies (ICTs) are often cited as an important factor in firm location decisions. This is especially true for firms engaged in information intensive activities and those that have a strong need for advanced services such as broadband. Despite the suggested importance of these technologies, quantitative work evaluating the link between firm location and broadband provision is sparse and existing knowledge remains largely theoretical and speculative. However, theoretical evaluations of the impact of ICTs on firm location do provide a foundation for quantitative analyses of this relationship and may be grouped into three schools of thought: the deconcentration school, the concentration school, and the heterogeneous effects school. The predictions made by these three schools of thought will be analysed in an exploratory context to better understand the relationship between firm location and ICTs, with a focus on broadband service provision. A combination of basic spatial statistical analytical tools and geographic information systems (GIS) will be used in an exploratory spatial data analysis framework to evaluate the relationship between firm location and broadband provision trends from 1999 to 2004 in the state of Ohio. Results suggest that changes in broadband provision have no relationship with changes in firm location. However, a disaggregated, firm level analysis of this relationship does provide statistically significant results for a subset of industrial sectors. Firm size is also found to impact the correlation between firm presence and broadband provision. These results suggest that firm size and industry are perhaps critical components in determining the relative importance of ICTs, such as broadband, in firm location decisions. [ABSTRACT FROM AUTHOR]