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date: 23 January 2020

Abstract and Keywords

This chapter discusses frontier topics in economic geography as they relate to firms and agglomeration economies. The chapter focuses on areas where empirical research is scarce but possible. The chapter first outlines a conceptual framework for city formation that allows us to contemplate what empiricists might study when using firm-level data to compare the functioning of cities and industries with each other. The chapter then examines a second model of the internal structure of a cluster to examine possibilities with firm-level data for better exposing the internal operations of clusters. An overwhelming theme of the review is the vast scope for enhancements of our picture of agglomeration with the new data that are emerging.

Keywords: agglomeration, clusters, cities, innovation, spillovers

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