.....industries tend to cluster in particular cities simply - TopicsExpress

Majekodunmi Oluoye

.....industries tend to cluster in particular cities simply because new firms are formed mainly by workers who leave other successful firms, taking the relevant tacit knowledge with them. Indeed, a large literature on knowledge spillovers points to their remarkably narrow geographic range. The exceptions often confirm the rule. The US would not have been able to build the first atomic bomb in just four years had Hitler not encouraged so many key scientists to leave Europe. The bottom line is that urbanization, schooling, and Internet access are woefully insufficient to transmit effectively the tacit knowledge required to be productive. That is why today’s emerging markets are so much less productive than rich countries were in 1960, even though the latter were less urban, had higher birth rates and less formal schooling, and used much older technologies. Read more at project-syndicate.org/commentary/on-the-mental-sources-of-productivity-growth-by-ricardo-hausmann#Y885fLgH8I1OBymh.99

Posted on: Thu, 31 Oct 2013 12:02:35 +0000

.....industries tend to cluster in particular cities simply - TopicsExpress

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