Industrial Clusters

Abstract

Firms tend to concentrate in clusters and cities, drawn by the markets they serve, the products and services they produce, and the skills they require. In France, the United Kingdom, and the United States, 75 to 95 percent of industry is clustered or concentrated relative to overall economic activity.¹ Firms in low-and middle-income countries show similar tendencies toward geographical concentration. More than half of the large-scale industrial firms in Tunisia are located in only two geographical areas. In Vietnam, villages in ancient times concentrated on producing individual products such as wooden furniture or ceramics, and today large firms are surrounded