Understanding industry agglomeration and its driving forces is critical for the formulation of industrial policy in developing countries. Crucial to this process is the definition and measurement of agglomeration.
We propose a new measure and examine what it reveals about the importance of transport costs, labour market pooling, and technology transfer for agglomeration processes.
We contrast this analysis with insights from existing measures in the literature and find very different underlying stories at work. An exceptionally rich set of data from Vietnam makes us confident that our measure is superior at least in developing country contexts.
Bruce Katz, of the Brookings Institution, said [land mapping] is not just about "real estate," but about access "to a talent pool." "Automobiles are essentially computers on wheels," said Katz, who focuses on the challenges and opportunities of global urbanization. "The broader Detroit area is one of the greatest hubs of technological innovation around manufacturing."
"There is enormous opportunity for a smarter use of public assets in the cores of cities around anchors like waterfronts and research institutions."
"Power is shifting globally. With national governments challenged, cities in the United States and beyond have assumed increased responsibility for addressing many of our biggest policy challenges."