the.com/cluster theory
Businesses cozy up geographically because rivals make surprisingly good neighbors.
means An economic theory that firms in the same industry gain a competitive edge by locating near each other, sharing talent, suppliers, and ideas.
from Popularized by economist Michael Porter in his 1990 book The Competitive Advantage of Nations, building on older observations about industrial districts like Alfred Marshall's 19th-century work on localized trades in England.
silicon valleythe textbook cluster everyone cites
competitors helpproximity to rivals can boost innovation
porter's diamondclusters are one of four national advantage factors
knowledge spilloverideas leak faster between nearby firms