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New Media and New Economy Cluster Dynamics
New media and new economy cluster dynamics
Philip Cooke

This chapter focuses on the organizational characteristics of new media businesses. Like other new economy industries such as information and communication technologies (ICT), including varieties of software engineering, and biotechnology, such firms tend to cluster in geographical proximity. They do this for a number of reasons, but the main one seems to be to access ‘spillovers’. These are external economies that come from co-location with other like-minded or complementary businesses. Opportunities for joint contracts, sharing of knowhow, and exchange of human or, more collectively, social capital are greater in such settings. New media differ from other new economy clusters in being less likely to agglomerate around universities or research laboratories ...

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