Chapter 20 Industrial districts as the outcome of self-organisationin time and space
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The spatial distribution of economic activities and location of industries evolved as a result of a combination of natural factors and complex human activities. The simulation of long-term processes in terms of the division of labour simultaneously with the dynamics of company location requires methods other than those used in mainstream economics. In evolutionary biology, conceptual models inspired by agent-based modelling have the capacity to simulate the microscopic behaviour of each firm influenced by the external environment and the behaviour of the closest individuals. Following Marshallian principles, it is assumed that evolution is driven by the two opposing forces of cooperation and competition. The result of spatial dynamics in an ideal evolutionary environment that leads to results known in the real world as industrial districts made up of a large number of small businesses.

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