Industry clusters, unlike the industrial chain, depend less on industry interrelatedness. They consist of a collection of both connected and unconnected industries located geographically together as a community of industries. Four relevant models of such industry communities are discussed in this chapter: agglomeration, enterprise cluster, industrial concentration, and industry aggregation.

Alfred Weber, a German economist, formulated a set of rules and concepts relating to agglomeration in his 1929 book Theory of the Location of Industries, which he defined as the process of spatial concentration. Enterprise cluster theory treats a single enterprise as an independent life, so “interactions between different enterprises as well as the environment” are analogous to the phenomenon of aggregation of species in nature. The distribution of such enterprise clusters can involve different industries, however. Industrial concentration refers to the situation where several relatively large-scale enterprises in an industry locate in close proximity to each other. Industry aggregation research is a study of the close spatial distribution of same or similar industries, and the research especially considers the degree of concentration changes: from dispersed to concentrated.

Industrial concentration that results in an industry monopoly is irrelevant for spatial distribution studies. Industry aggregation may not always bean industry cluster ...

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