Using a panel (2000-2011) of cross-state relocation patterns of manufacturing firms from the National Establishment Time Series (NETS) database we estimate a state-to-state relocation model for all manufacturers and separately for three groups of industries defined by knowledge intensity. The analysis of the data suggests that very few manufacturing firms relocate across state lines in any given year and the vast majority of those that do are small in size and move to adjoining states. Econometric results reveal that regional determinants of relocation decisions vary by type of manufacturing firm. Whereas a number of factors considered in this study are significant in the models, estimated marginal effects at the mean are infinitesimal. This implies that states attempting to encourage manufacturing firms to relocate from other states via traditional perspectives on business climate are unlikely to be successful.

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Broadband access may have important implications for establishment births in rural areas, which feature thinner markets. Broadband may be especially important for rural nonemployer businesses, particularly those without a storefront, for access to nontraditional market channels. As women are more likely to run these types of small businesses, we further expect that broadband may have important implications for women-led businesses. With an effective instrumental variable approach, we find evidence that broadband access is a key factor leading to a higher establishment birth rate across business size and gender in rural areas. This paper identifies the largest effects on nonemployer, women-led and remote rural establishments.