Abstract: How do differences in the local business environment influence location of industry within countries? How do the benefits of a good business environment compare with those from good market access and agglomeration economies from industry clustering? The authors examine these questions by analyzing location decisions of individual firms. Using data from a recently completed survey of manufacturing firms in India, they find that both the local business environment and agglomeration economies significantly influence business location choices across cities. In particular, excessive regulation of labor and of other industrial activities reduces the probability of a business locating in a city. The authors ' findings imply that in order to attract industrial activity, smaller or remoter cities need to offer even more attractive policy concessions or reforms to offset the effects of their relatively adverse (economic) geography. Their methodology pays special attention to the identification of agglomeration economies in the presence of unobserved sources of natural advantage.

How do differences in the local business environment influence location of industry within countries? How do the benefits of a good business environment compare with those from good market access and agglomeration economies from industry clustering? The authors examine these questions by analyzing location decisions of individual firms. Using data from a recently completed survey of manufacturing firms in India, they find that both the local business environment and agglomeration economies significantly influence business location choices across cities. In particular, excessive regulation of labor and of other industrial activities reduces the probability of a business locating in a city. The authors' findings imply that in order to attract industrial activity, smaller or remoter cities need to offer even more attractive policy concessions or reforms to offset the effects of their relatively adverse (economic) geography. Their methodology pays special attention to the identification of agglomeration economies in the presence of unobserved sources of natural advantage.

Clusters of specialized businesses are being promoted around the world, aided by high-profile examples such as Silicon Valley. Using evidence from high- and low-income economies, as well as detailed case studies that show the special conditions behind successful clusters, this book provides a new vantage point on this high-interest topic, making it ideal for students of business location, policy-makers and managers seeking a real-world understanding of clustering.

It is a daunting task to build institution and infrastructure over a short time period in developing countries. But in the absence of sound institutions and adequate infrastructure, it is difficult for economic transformation to take place. An alternative is to facilitate existing industrial clusters or build industrial parks by creating an enabling environment in a limited place. This paper reviews the commonly used strategies to build effective clusters and industrial parks. Clusters and industrial parks are location specific. Because they have an informational advantage, local governments are in a better position than the central government to identify and solve the bottlenecks that affect clusters and industrial parks. As clusters and industrial parks evolve, new bottlenecks emerge, thereby requiring new solutions. This in turns calls for continuous tinkering by local governments. It is important to place local governments and business communities in the driver’s seat of local economic growth so that they can watch out for and adjust to the bumps in the road ahead.

Economic challenges in developing Asian countries have become more complex: urban populations are growing at great cost to the environment, climate change has increased risks of natural disasters, and income gaps within and between developing countries are widening. These factors threaten the sustainable growth and development of urban areas, the drivers of Asia's economy. A strategic approach for inclusive growth is needed. The City Cluster Economic Development approach provides a strategic framework and a set of analytical tools, which governments, businesses, and communities can use to support the inclusive and sustainable development of competitive urban economies in Asia. Said approach was developed and tested by the Asian Development Bank to improve the basis for integrated planning and development of urban regions in Asia and the Pacific. It also elps urban managers and other city stakeholders identify action plans and determine priority investment areas.

Karlsson has assembled a strong mix of papers that collectively provide a good sense of some of the latest research in the field. Edward Feser, Review of Regional Studies This is a book every regional scientist and spatial analyst should have on their bookshelf. Like most Handbook type publications it provides depth and breadth on the basics of the industrial clustering concept. However, unlike most of these type of collections, it goes beyond the foundation material to identify and speculate on questions that are emerging on the research frontiers such as at the intersection of cluster theory and agglomeration processes, knowledge spillovers and technology transfer not to mention the obvious link to economic development theory, policy and practice. Roger R. Stough, George Mason University, US This eclectic volume presents a host of methods to describe tendencies for the joint location of economic agents in space. And it illustrates useful applications of these concepts in diverse fields financial services, culture, tourism, and industry, to name just a few. John M. Quigley, University of California, US Clusters have increasingly dominated local and regional development policies in recent decades and the growing intellectual and political interest for clusters and clustering is the prime motivation for this Handbook. Charlie Karlsson unites leading experts to present a thorough overview of economic cluster research. Topics explored include agglomeration and cluster theory, methods for analysing clusters, clustering in different spatial contexts and clustering in service industries. Encompassing the developed economies of Europe and North America, the Handbook provides a basis for improving cluster policy formulation, interpretation and analyses. This comprehensive overview of research on economic clusters will be of interest to scholars and PhD students in (regional) economics, economic geography, regional planning and management as well as practitioners and policymakers at the national, regional and local levels involved in cluster formation and cluster management.

'A Handbook of Industrial Districts is a very well-organized and structured collection of scientific works on the theory of industrial districts.' - Roberta Capello, Regional Studies In this comprehensive original reference work, the editors have brought together an unrivalled group of distinguished scholars and practitioners to comment on the historical and contemporary role of industrial districts.

The effects of spatial location on socio-economic development is a critical issue in urban and regional planning. This comprehensive work examines the success or failure of an urban place in relation to the spatial characteristics of the urban cluster to which it belongs. Employing case studies from a variety of countries, it analyzes relationships between the clustering of towns and their attractiveness to migrants and investors. In addition it provides a fundamental overview and critical analysis of basic concepts in the field of urban and regional location, introducing new methods for assessing the sustainability of urban growth in central and peripheral regions. The book also proposes planning strategies designed to enhance the potential of urban growth.

This unique and thoroughly researched book examines small and medium-sized enterprises (SMEs) in Indonesia, focusing on Indonesian government policy for developing industrial clusters. Aknolt Kristian Pakpahan elaborates on such challenges as a lack of political coordination as well as cultural factors for the long-term growth of business clusters. He uses case studies of the footwear and ceramic industries to expand on the theoretical research, resulting in a fascinating and useful text for researchers of industrial development.

This book provides a theoretical framework to explain the formation and growth of economic agglomerations and industrial clusters from the viewpoint of spatial economics, and goes on to present current examples of clustering and policy in different economies.