Growing Silicon Valley on a landscape: an agent-based approach to high-tech industrial clusters [chapter]

Junfu Zhang
Entrepreneurships, the New Economy and Public Policy  
We propose a Nelson-Winter model with an explicitly defined landscape to study the formation of high-tech industrial clusters such as those in Silicon Valley. The existing literature treats clusters as the result of location choices and focuses on how firms may benefit from locating in a cluster. We deviate from this tradition by emphasizing that high-tech industrial clusters are characterized by concentrated entrepreneurship. We argue that the emergence of clusters can be explained by the
more » ... plained by the social effect through which the appearance of one or a few entrepreneurs inspire many followers locally. Agent-based simulation is employed to show the dynamics of the model. Data from the simulation and the properties of the model are discussed in light of empirical regularities. Variations of the model are simulated to study policies that are favorable to the high-tech economy.
doi:10.1007/3-540-26994-0_6 fatcat:dun6pztrbbaidav4yh3vx74pje