Exploring the Continued Economic Importance of High Tech Industries: Trends and Implications

The objective for this exploratory study is to investigate the economic impact of high tech industries over time, and assess trends of their importance to regional economic performance. Using time series regional economic data on US metropolitan regions, 26 regression models are built to explore these impact trends. The results show that high tech industries began to influence regional economic performance from 2000 onwards. They continued to escalate in importance until 2011, when they began to decline. The findings suggest that that there are increasingly other factors that can influence regional economic performance; and it is plausible that regions that have developed a fairly strong high tech cluster will then rely on other non-ICT related factors for economic sustainability.

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