The New Economy in the City: Emergence and Location Factors of Internet-based Companies in the Metropolitan Area of Lyon, France

Abstract

This article focuses on the tendency of e-business towards urban concentration. The complexity of the Internet sector results in an increasing variety of business location. The survey of 92 firms in the multimedia sector in Lyon shows that enterprises do not have the same location needs, neither at regional nor at local level. Multimedia and software designers are more 'footloose' than Web agencies and Internet service outsourcers, which are linked to their clients and to broadband networks. The former may locate in picturesque renovated areas, or even in rural areas. The latter tend to share high-tech-suited locations with Internet and telecom carriers in state-of-the-art, wired premises. Finally, this considers the question of the status of a medium-sized city and its different districts in the context of a growing information economy.

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