Working Paper: CEPR ID: DP14143
Authors: William R. Kerr; Frédéric Robert-Nicoud
Abstract: Tech clusters like Silicon Valley play a central role for modern innovation, business competitiveness, and economic performance. This paper reviews what constitutes a tech cluster, how they function internally, and the degree to which policy makers can purposefully foster them. We describe the growing influence of advanced technologies for businesses outside of traditional tech fields, the strains and backlash that tech clusters are experiencing, and emerging research questions for theory and empirical work.
Keywords: clusters; agglomeration; innovation; entrepreneurship; patents
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| tech clusters (L63) | innovation (O35) |
| tech clusters (L63) | economic performance (P17) |
| concentration of tech activity (L63) | business competitiveness (F23) |
| knowledge spillovers (O36) | innovation capacities (O36) |
| labor market pooling (J68) | productivity (O49) |
| cultural and social dynamics (Z13) | innovation (O35) |