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This paper contributes to the Evolutionary Economic Geography literature by employing the conceptualization of 'Related variety' to compare the emerging internet industry in China's two largest city-regions: Beijing and Shanghai. Official website registration records, Alexa internet traffic counts, venture capital investment data and information gathered through interviews with internet entrepreneurs were combined to develop the analysis. The findings confirm that the replication and diversification of related variety play a leading role in shaping the locational dynamics of an emerging industry.
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