Specialized Business Clusters Attract Firms, Boosting Economic Growth and Innovation.
The study looked at how business services firms choose where to locate. They used a special model to figure out what factors are important to these firms, like having other similar businesses nearby. They found that business services firms really like being in areas with lots of other similar businesses, and they prefer being near firms in the same industry. They either like being in areas with lots of similar businesses or in areas with a mix of different types of businesses, but not both at the same time.