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

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posted on 2024-02-12, 10:44 authored by Carolin IoramashviliCarolin Ioramashvili, Maryann Feldman, Frederick Guy, Simona Iammarino
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.

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Publication status

  • Published

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  • Published version

Journal

Cambridge Journal of Regions, Economy and Society

ISSN

1752-1378

Publisher

Oxford University Press

Article number

rsae003

Department affiliated with

  • SPRU - Science Policy Research Unit Publications
  • Business and Management Publications

Institution

University of Sussex

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  • Yes

Peer reviewed?

  • Yes

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