A number of possible advantages of industry agglomeration -- or spatial clustering -- have been identified in the research literature, notably those related to shared costs for infrastructure, the build-up of a skilled labour force, transaction efficiency, and knowledge spillovers leading to...

In the 1990s, there has been an increase in interest in the spatial agglomeration of similar and related firms and industries. The recent literature is, however, marked by a lack of balance between theoretical development and empirical validation of the importance of agglomeration economies. Our...