CONTENTS Certificate of original authorship . ii Acknowledgments v Executive Summary xi 1 Overview 1 2 Agglomeration . 3 2.1 What is Agglomeration? . 3 2.2 Why does agglomeration happen? 3 2.2.1 Proximity . 3 2.2.2 Options 4 2.3 Locational or Comparative advantage 4 2.4 Agglomeration Economies 5 3 Agglomeration in the era before 1980’s 7 3.1 Industrial Location Theory . 7 3.2 Hoteling’s Law 8 3.3 Competitive advantage 11 4 Agglomeration Today 13 4.1 Collaborative advantage 14 4.2 Globalization . 15 4.2.1 Global Cities . 16 5 Financial Services. . 19 5.1 London 19 5.1.1 History of London . 19 5.2 New York 23 5.2.1 History of New York. 23 5.2.2 New York, Now 25 5.3 Singapore 28 6 IT & ITeS . 31 6.1 Silicon Valley 31 6.3 Bangalore 36 7 Analysis 41 7.1 Knowledge is Sticky . 42 7.2 Decentralized operations and externalization, needs a better control . 44 7.3 Desirability of certain locations 46 7.4 Network of Complementors and Competitors 49 7.5 Agglomeration Economies 52 8 Implications of these learnings 55 Bibliography vii