Industry Clusters and Sydney's ITT Sector: northern Sydney as ‘Australia's Silicon Valley’?

Abstract This paper examines the claim that the North Ryde–North Sydney arc is Australia's ‘Silicon Valley’, seeking firstly to identify the empirical validities behind the claim, and secondly to ask how the documented patterns might be explained. The paper evidences the fact that this area indeed provides the pre-eminent site for Australia's information technology and telecommunications (ITT) sector. However, examination of this industry suggests that its expansion in Sydney has been motivated primarily by the increasing centrality of advanced producer services within the high-order business sector. It is Sydney's attributes for multinational business, as opposed to the propulsive dynamics of local clustering per se, which appears to explain the spatial concentration of these activities. Thus, it is the urbanisation economies of Sydney more than the localisation economies of the ITT sector which account for the growth of this sector in the city. Nevertheless, localisation economies are sporadically significant, suggesting that Sydney's ITT sector is to a certain extent a hybrid product of the two types of economies.

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