New research reveals how proximity shapes economic activity in the US.
The article explores how close businesses need to be to each other to benefit from being nearby. By studying three different industries in the U.S., researchers found that the type of industry is just as important as how close businesses are to each other in determining the benefits of being clustered together. The study used data from the U.S. Census Bureau to look at how different factors like labor availability and knowledge sharing affect businesses in different locations. The results show that industry characteristics play a big role in how businesses benefit from being close to each other.