Agglomerative forces and cluster shapes
By: William R. Kerr, Scott Duke Kominers
Contributors: Kominers, Scott Duke; Harvard Business School
Edition: Revised edition
Series: Working paper / Harvard Business School -- 11-061; Working paper (Harvard Business School) -- 11-061
Publisher: Harvard Business School
Published: 2012
Place of publication: Boston]
Language: eng
Number of pages: 38
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 patent technology clusters.
Notes: Includes bibliographical references (pages 31-36).