The Web of Production: The Economic Geography of Commercial Internet Content Production in the United States

Abstract

This paper provides a description and analysis of the clustering behavior of the commercial Internet content industry in specific geographical locations within the United States. Using a data set of Internet domain name developed in the summer of 1998, I show that three regions—San Francisco, New York, and Los Angeles—are the leading centers for Internet content in the United States in terms both of absolute size and of degree of specialization. In order to understand better how the industrial structure of a region impacts the formation of the Internet content business, I provide an analysis of how the commercialization of the Internet has changed from 1993 to 1998 and explore the relationship between existing industrial sectors and the specialization in commercial domain names. Over time there appears to be a stronger connection between Internet content and information-intensive industries than between Internet content and the industries providing the computer and telecommunications technology necessary for the Internet to operate. Although it is not possible to assign a definitive causal explanation to the relationships outlined here, this paper provides a first step in theorizing about the overall commercialization process of the Internet.