Agglomeration

Agglomeration- a localized economy in which a large number of companies, services, and industries exist in close proximity to one another and benefit from the cost reductions and gains in efficiency that result from this proximity.
An agglomeration of things is a lot of different things gathered together, often in no particular order or arrangement.
Here are some key takeaways:
1)Agglomeration of firms in particular regions is driven by several factors that can be explained by localization—the clustering of similar firms because of geographic advantages, such as access to inputs—and urbanization—the clustering of firms in different industries due to the advantages the cities themselves provide.
2)Agglomeration benefits regions and residents because industry clusters lead to better job matching, higher wages and greater opportunities for social and civic engagement.
3)To take advantage of the benefits of agglomeration, economic developers should seek ways to grow clusters that already exist in a region and pursue policies and initiatives that foster a sense of place to attract and maintain a thriving, civically engaged workforce.

Sources:

Merriam-Webster. (2024). Agglomeration economy. In Merriam-Webster.com Dictionary.

Definition of agglomeration from the Collins English Dictionary

Edward L. Glaeser. (2010). “Introduction,” in Agglomeration Economics, ed. Edward L. Glaeser. (Chicago: The University of Chicago Press)

Edward L. Glaeser.(1999). “Learning in Cities,” Journal of Urban Economics 46.