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Abstract

Economic analysts have expressed significant interest in the transition of the industrial base towards knowledge-intensive production. A central aspect of this transition is the growth and development of industries that provide the technological and scientific foundations for what is often termed the New Economy. This empirical study develops a geographic profile of New Economy industries in Canada across the urban/rural hierarchy and in different metropolitan areas between 1990 and 2000. The study also investigates whether measures of agglomeration economies are correlated with the increased incidence of New Economy industries across different locations over the study period. The study shows that the employment growth in New Economy industries through the 1990s has been primarily an urban phenomenon and that agglomeration economies have played an increasingly important role in the formation of these industries.

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