Agglomerative Forces and Cluster Shapes

William Kerr and Scott Kominers

Working Papers from U.S. Census Bureau, Center for Economic Studies

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: CES; economic; research; micro; data; microdata; agglomeration; clusters; industrial organization; Silicon Valley; entrepreneurship; labor markets; technology flows; patents; natural advantages (search for similar items in EconPapers)
JEL-codes: J2 J6 L1 L2 L6 O3 R1 R3 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2012-06
New Economics Papers: this item is included in nep-cse, nep-ent, nep-geo, nep-ino, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
https://www2.census.gov/ces/wp/2012/CES-WP-12-09.pdf First version, 2012 (application/pdf)

Related works:
Journal Article: Agglomerative Forces and Cluster Shapes (2015)
Working Paper: Agglomerative Forces and Cluster Shapes (2012)
Working Paper: Agglomerative Forces and Cluster Shapes (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:12-09

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