The Co-location of Innovation and Production in Clusters

Mercedes Delgado*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


This paper quantifies the extent of co-location of innovation and production for industry clusters with varying knowledge intensity. If input-output, knowledge, and skill linkages are interdependent and geographically bounded, then we would expect innovation and production to be co-located in regional clusters. However, theory predicts that the degree of agglomeration benefits associated with co-location may vary across economic activities with different knowledge intensity. Using data from the U.S. Cluster Mapping Project, I develop measures of the co-location of innovation and production for 27 industry clusters, examining patterns across regions and over time (1998–2015) in the United States. I find that there is a significant co-location of innovation and production for many clusters, especially for those with higher knowledge intensity. This paper focuses on the Information Technology and Analytical Instruments cluster and the Automotive cluster to illustrate the co-location measures and the micro-geography of innovation and production.
Original languageEnglish
JournalIndustry and Innovation
Issue number8
Pages (from-to)842-870
Number of pages29
Publication statusPublished - Oct 2020

Bibliographical note

Available online 14. february 2020


  • Automotive cluster
  • Co-location of innovation and production
  • Economies of agglomeration
  • Industry clusters
  • Information and technology cluster
  • Micro-geography

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