This article explores the linkage between telecommunications infrastructure and high-tech industry growth in cities of two metropolitan areas, Minneapolis—St. Paul, Minnesota and Phoenix, Arizona. Results indicate that cities with greater telecommunications capacity are more likely to have positive growth in high-tech industry and all sectors analyzed. Yet, the results also suggest that while we often think of high-tech industry as a single entity, it is important to disaggregate the industry to determine whether certain production processes and services make the firm react differently to telecommunications as a location factor. Where high-tech firms are locating and the degree to which telecommunications infrastructure is attractive to these firms is of great import given that cities desire to take part in the New Economy. The findings suggest that local policy makers may have more success in attracting high-tech business that fit the city’s current telecommunications profile.
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