Silicon Valley is an example of an agglomeration economy.

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Silicon Valley is a prime example of an agglomeration economy, where a concentration of firms and industries in a particular region leads to increased productivity, innovation, and economic growth. The presence of leading tech companies, world-class Universities, venture capital firms, and a large pool of skilled workers has created a self-reinforcing cycle of innovation and entrepreneurship in Silicon Valley.

Silicon Valley Is an Example of an Agglomeration Economy