The information technology industry and telecommunications: An empirical analysis of cities in the Minneapolis-St. Paul and Phoenix metropolitan areas.

The article reports that the 1990s saw many cities clamoring to become the next silicon haven. When the digital economy encountered major setbacks in 2000, the bursting of the information technology bubble prompted localities to wonder if tying their economies to such an industry was a sound economic-development policy. All indicators thus far suggest that the information technology (IT) industry is still beneficial to the economy of a region. A recent government report explains that the IT industry not only accounted for nearly one-third of economic growth in the U.S. between 1995 and 2000, but with the industry's rebound, it also contributed to over one-third of U.S. growth in 2003.