A spatial concentration of specialized small and medium-sized firms, supported by a variety of regional institutions for promoting coordination, learning, and innovation (Lee and Saxenian (2008) J. Econ. Geog. 8, 2). Dense interactions among a large number of competing and cooperating firms create an external economy favouring technological innovation and learning (Wang (2007) J. Dev. Stud 43, 6).
Subjects: Earth Sciences and Geography.