A Dynamic View of Industrial Agglomeration

• Main Authors: Nobuyuki INAMIZU, Takahisa WAKABAYASHI
• Format: Article
• Language: English
• Published: Global Business Research Center 2013-02-01
• Series: Annals of Business Administrative Science
• Subjects: industrial agglomeration; localized industry; internal economies; external economies; gatekeeper
• Online Access: https://www.jstage.jst.go.jp/article/abas/12/1/12_13/_pdf/-char/en

This study first outlines the classic Marshallian and Weberian theories of industrial agglomeration, highlighting the difference between Weber’s theory, which “discusses the process of agglomeration emergence, based on predictable profit, from a state of nothingness,” and Marshall’s theory, which “discusses the process of continued self-reinforcement of existing agglomeration.” Consequently, one cannot expect to understand the dynamism of industrial agglomeration by viewing these two theories separately. This study integrates the two theories to identify a framework for viewing industrial agglomeration dynamically. Specifically, this paper pays particular attention to “gatekeeper”-type companies, which capture the demand from markets outside the industrial agglomeration and make use of networks within the industrial agglomeration to meet that demand.