Agglomerative forces and cluster shapes
By: William R. Kerr, Scott Duke Kominers
Contributors: Kominers, Scott Duke; National Bureau of Economic Research
Series: NBER working paper series -- working paper 16639; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16639.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We model spatial clusters of similar firms.  Our model highlights how agglomerative forces lead to localized, individual connections among firms, while interaction costs generate a defined distance over which attraction forces operate.  Overlapping firm interactions yield agglomeration clusters that are much larger than the underlying agglomerative forces themselves.  Empirically, we demonstrate that our model's assumptions are present in the structure of technology and labor flows within Silicon Valley and its surrounding areas.  Our model further identifies how the lengths over which agglomerative forces operate influence the shapes and sizes of industrial clusters; we confirm these predictions using variations across both technology clusters and industry agglomeration"--National Bureau of Economic Research web site.
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