Agglomeration economies drive new firm locations within metropolitan areas.
The article explores how different types of businesses decide where to set up shop in big cities. By looking at firms in high, medium, and low-tech industries, the researchers found that certain benefits, like being close to other businesses, play a big role in these decisions. They focused on how these benefits affect firms very close to the city center. The study shows that the central city's influence is important for new businesses choosing locations within the metropolitan area.