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Growing Silicon Valley on a landscape: an agent-based approach to high-tech industrial clusters

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  • Junfu Zhang

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Abstract

We propose a Nelson-Winter model with an explicitly defined landscape to study the formation of high-tech industrial clusters such as those in Silicon Valley. The existing literature treats clusters as the result of location choices and focuses on how firms may benefit from locating in a cluster. We deviate from this tradition by emphasizing that high-tech industrial clusters are characterized by concentrated entrepreneurship. We argue that the emergence of clusters can be explained by the social effect through which the appearance of one or a few entrepreneurs inspire many followers locally. Agent-based simulation is employed to show the dynamics of the model. Data from the simulation and the properties of the model are discussed in light of empirical regularities. Variations of the model are simulated to study policies that are favorable to the high-tech economy. Copyright Springer-Verlag Berlin/Heidelberg 2003

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Bibliographic Info

Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 13 (2003)
Issue (Month): 5 (December)
Pages: 529-548

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Handle: RePEc:spr:joevec:v:13:y:2003:i:5:p:529-548

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Related research

Keywords: Silicon Valley; Agent-based simulation; Industiral clusters;

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Cited by:
  1. Guido Fioretti, 2005. "Agent-Based Models of Industrial Clusters and Districts," Urban/Regional 0504009, EconWPA.
  2. Antonelli Cristiano & Ferraris Gianluigi, 2012. "Endogenous knowledge externalities: an agent based simulation model where schumpeter meets Marshall," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201202, University of Turin.
  3. Flavio Lenz-Cesar & Almas Heshmati, 2009. "Determinants of Firms Cooperation in Innovation," TEMEP Discussion Papers 200927, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2009.
  4. Heshmati, Almas & Lenz-Cesar, Flávio, 2013. "Determinants and Policy Simulation of Firms Cooperation in Innovation," IZA Discussion Papers 7487, Institute for the Study of Labor (IZA).
  5. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2007. "Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis," Tinbergen Institute Discussion Papers 07-079/3, Tinbergen Institute.
  6. Leonhard Dobusch & Elke Schü�ler, 2013. "Theorizing path dependence: a review of positive feedback mechanisms in technology markets, regional clusters, and organizations," Industrial and Corporate Change, Oxford University Press, vol. 22(3), pages 617-647, June.

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