ICT clusters in development: theory and evidence

This paper analyzes the impact of information and communications technologies (ICT) on economic growth and agglomeration, emphasizing outcomes for regional inequality. ICT significantly displays the same features—increasing returns, knowledge spillovers—that drive both growth and agglomeration. However, in the data, cross-economy inequality has been rising for longer than has ICT been perceptibly influencing economic performance. In Europe, nation states show no special advantage in using ICT as a driver for economic growth; ICT clusters seamlessly transcend national borders.

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