Local industrial clusters have attracted much attention in recent economic and geographic literature. The focus has been on identifying the conditions for the emergence of such clusters. Here the long-term implications of local industrial clusters are studied. To this end, we examine German...

This paper studies the dynamics that cause the emergence of local industrial clusters at a general level. Predictions about these dynamics are deduced from theoretical modelling. The predictions are tested with the help of empirical data from Germany. Three-digit manufacturing industries are...