What is it about?
Departing from research on expanding, high-technology industries, we study the impact of agglomeration in a declining, low-technology industry. We examine how agglomeration-related survival benefits depended upon the presence of locally headquartered manufacturing plants and whether such benefits came at the expense of other local industries.
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Why is it important?
Although more footwear manufacturing jobs were retained in agglomerations with many locally headquartered plants, such locales also exhibited lower manufacturing job growth in other industries.
Perspectives
These findings lend greater generalizability to agglomeration theories and also imply trade-offs at the community level.
Dr. Christopher Ian Rider
University of Michigan
Read the Original
This page is a summary of: Close, but not the same: Locally headquartered organizations and agglomeration economies in a declining industry, Research Policy, April 2010, Elsevier,
DOI: 10.1016/j.respol.2010.01.007.
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