Disentangling agglomeration and network externalities: A conceptual typology

Agglomeration and network externalities are fuzzy concepts. When different meanings are (un)intentionally juxtaposed in analyses of the agglomeration/network externalities-menagerie, researchers may reach inaccurate conclusions about how they interlock. Both externality types can be analytically combined, but only when one adopts a coherent approach to their conceptualization and operationalization, to which end we provide a combinatorial typology. We illustrate the typology by applying a state-of-the-art bipartite network projection detailing the presence of globalized producer services firms in cities in 2012. This leads to two one-mode graphs that can be validly interpreted as topological renderings of agglomeration and network externalities.