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The cluster effect can be more easily perceived in any urban agglomeration, as most kinds of commercial establishments will tend to spontaneously group themselves by category. Shoe shops (or cloth shops), for instance, are rarely isolated from their competition. In fact, it is common to find whole streets of them.
Econometric analysis by Liang and Goetz showed that agglomeration effects account for technology-intensive industries benefiting from Jacobs-type knowledge spillovers. [12] Furthermore, agglomerated centres of production, like cities, also facilitate learning—that is, knowledge generation, diffusion, and accumulation—on a larger scale than ...
Geographic concentration also creates more personable relations that yield better business in all manners. Often times, city officials will incentivize high-tech companies to set up shop in close relation of each other to induce the cluster effect. In urban studies, the term agglomeration is used. [3]
The urban environment creates positive externalities that benefit several different industries. Jane Jacobs is often credited with the idea that urban diversity and a city’s size leads to agglomeration economies. However, Marshall’s (1920) [4] discussion of urban diversity predates her work. [5]
[33] [34] Multiple scholars approach this in different ways, but describe this "urban laboratory" environment good for testing a wide variety of practices. [ 35 ] [ 34 ] For example, the book Life After Carbon documents a number of cities which act as "urban climate innovation laboratories". [ 36 ]
The centre is active in exploring how the Internet of Things can be deployed in large urban areas linking objects in the built environment through internet technologies, [8] and was active with the Technology Strategy Board’s Future Cities Catapult in pioneering new software systems for smart cities such as dashboards and portals. [9]