Agglomeration

Agglomeration refers to the clustering or grouping of similar businesses, industries, or people in a specific area. This phenomenon often happens in cities or regions where companies benefit from being near one another. For example, technology firms might cluster in a tech hub like Silicon Valley, allowing them to share talent, resources, and ideas easily. Agglomeration can lead to increased efficiency, innovation, and economic growth, as businesses can collaborate and attract more customers and skilled workers. Overall, it’s about leveraging proximity to enhance productivity and foster development.