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Industrial clustering ‐ the tendency of firms in the same line of business to “cluster” together in the same place ‐ is currently one of the hottest topics in research. But it has a long pedigree. This article summarises the debate, especially in the context of innovation, and points to some of the gaps which future research needs to fill. Whilst the theoretical arguments are well‐developed, empirical work on clusters and innovative activity is more rare.
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Rui Baptists (1996) studied this question.
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