Publications
Publications
- 2010
- HBS Working Paper Series
Agglomerative Forces and Cluster Shapes
By: William R. Kerr and Scott Duke Kominers
Abstract
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.
Keywords
Entrepreneurship; Geographic Location; Patents; Labor; Industry Clusters; Industry Structures; Relationships; Competitive Advantage; Technology Industry; California
Citation
Kerr, William R., and Scott Duke Kominers. "Agglomerative Forces and Cluster Shapes." Harvard Business School Working Paper, No. 11-061, December 2010.
About The Authors
