Why do Biotechnology Firms Cluster? Some Possible Explanations

Industrial history shows us how firms have always been unequally distributed geographically. In all industrial periods, firms have been sensitive to specific factors that have favoured one location instead of another. The aggregate result of single firm localisation choices is that, if firms are attracted by similar factors that can be found in one location and not in another, they will tend to cluster in those specific geographic areas. The focus of this chapter is to study the reasons for clustering in the relatively new high-technology sectors, including biotechnology