To promote economic growth and improve their tax base, local governments compete to attract "high-tech" industries. The authors analyze the outcome of this competition, documenting the geographical dispersion of high-tech activities over the last 15 years and assessing the degree to which their location is attributable to the effects of local factors, including public policies. They show that high-tech jobs and establishments have changed location across localities and that many local conditions influence the location of high-tech activities. However, these conditions reflect the wealth of the community and not local governmental spending and tax policies, which have only marginal effects on the location of high-tech activities.
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