The number of computer industry firms located in California's Silicon Valley exemplifies the concept of agglomeration.

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Agglomeration refers to the clustering of firms in a certain geographic area due to factors such as proximity to suppliers, customers, and skilled labor, as well as knowledge spillovers and economies of scale. Silicon Valley is a prime example of agglomeration in the computer industry, as it is home to numerous firms and a highly skilled workforce, creating a self-reinforcing cycle of innovation and growth.

The Number of Computer Industry Firms Located in California's Silicon