IT companies have a tendency to cluster in site-specific locations such as Silicon Valley and the Raleigh-Durham Research Triangle. This phenomenon is known as

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Agglomeration economies refer to the benefits derived from firms being located close to one another, such as access to specialized labor, knowledge spillovers, and economies of scale. A notable example of this is the clustering of IT companies in Silicon Valley, where firms benefit from being in close proximity to one another.

IT Companies Have a Tendency to Cluster in Site-Specific Locations