by Hong, Junjie
Using the 2004 China economic census database, this paper examines the impact of information and communication technologies (ICT) on the geographic concentration of manufacturing industries, controlling for other determinants of industrial agglomeration. Higher geographic concentration is found consistently in industries where ICT are more widely adopted, and the association is stronger at higher geographic levels. Furthermore, young firms that have adopted ICT, although they are more footloose, contribute to industrial agglomeration. High-tech industries with advanced ICT also tend to agglomerate. Contrary to the prevalent argument that ICT lead to more dispersion, our study suggests that ICT promote industrial agglomeration.
Software industry is a fast growing sector of the economy which is undergoing significant changes both for the presence of the open source mode of production and for the challenges of globalization and convergence with other industries. This paper analyses the role of open source software (OSS) on competition and innovation in the software industry and debates the economic rationales for promoting the adoption of OSS by national and local governments.