Factories Flock to Cities, Boosting Local Economies Nationwide
The article explores why businesses in Spain tend to clump together in certain industries from 1993 to 1999. They found that many industries, including high-tech and traditional ones, tend to group in particular areas. It seems that transportation costs play a big role, pushing companies to set up close to their customers and suppliers. However, this doesn't apply to all industries. Interestingly, industries with more advanced technology tend to cluster even more. So, where companies decide to establish themselves can depend on things like the availability of skilled workers, the sharing of information between businesses, and services for producers.