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Gathering round Big Tech: how the market for acquisitions concentrates the digital sector

Ioramashvili, Carolin, Feldman, Maryann, Guy, Frederick and Iammarino, Simona ORCID: 0000-0001-9450-1700 (2024) Gathering round Big Tech: how the market for acquisitions concentrates the digital sector. Cambridge Journal of Regions, Economy and Society, 17 (2). 293 - 306. ISSN 1752-1378

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Identification Number: 10.1093/cjres/rsae003

Abstract

Small businesses within the digital sector are spread across the USA. However, a significant number of promising small businesses concentrate in major technology hubs, either initially or through relocation. This phenomenon can be attributed to the influential role played by localized markets for financing and acquisition, which is, in turn, driven by the dominant market positions held by major digital platforms. Our research demonstrates a clear pattern of localized acquisition markets, particularly in sectors frequently targeted by the seven largest American digital giants—Amazon, Alphabet (Google), Apple, Microsoft, Meta (Facebook), Oracle, and Adobe, collectively known as ‘Big Tech’. This localization trend has become more pronounced between 2000 and 2020. Our analysis indicates that the gravitational pull of these acquisition markets poses challenges to local initiatives aimed at fostering digital businesses. These efforts would be more successful if measures were taken to limit the market influence of digital platforms.

Item Type: Article
Official URL: https://academic.oup.com/cjres
Additional Information: © 2024 The Author(s)
Divisions: Geography & Environment
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HD Industries. Land use. Labor
JEL classification: R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes
R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade
F - International Economics > F0 - General > F00 - General
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited: 28 May 2024 11:09
Last Modified: 22 Jul 2024 02:22
URI: http://eprints.lse.ac.uk/id/eprint/123670

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