Agglomeration, Diversity and Regional Growth
The objective of this paper is to empirically examine the importance of the structure of agglomeration on productivity and growth. The authors include the degree of co-agglomeration of similar industries as an explanatory variable in the empirical analysis, while simultaneously controlling for the degree of industry-specific agglomeration. The empirical analysis confirms a positive statistical relationship between interdependent and co-located industries on labour productivity.
Link
http://www.infra.kth.se/cesis/documents/WP71.pdf