Emerging industries are not rare elements in the economy; rather, theyconstitute a permanent feature in constantly developing and changingeconomic environments. However, the emergence of new industries is rarelypainless or particularly straightforward processes; actors involved in theseprocesses are confronted with uncertainties of which some are exclusive toemerging industries. A distinctive example of these processes was theemergence of the internet industry in Sweden and the agglomeration ofinternet firms in central Stockholm. Through three levels of uncertainty:(1) the newness of the technology introduced to the public and the emergingmarkets; (2) the process of developing new markets and approaching newcustomers and (3) the renegotiating of pre-existing structures and flexibleways of organizing work and labour, this article argues that agglomerationsor local urban milieus play a crucial role to actors (internet entrepreneurs)coping with uncertainty. Agglomerations or urban milieus compose anecessary infrastructure for (1) negotiating industrial legitimacy, andthus establishing structures and procedures in the emerging industry;(2) discovering market opportunities and (3) informal relations necessary inmaking flexible labour markets efficient.
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