A concentration of technically advanced industries that stimulate economic development in a specific geographic area. These industries, often characterized by innovation and high growth potential, attract investment, create jobs, and foster related economic activities in the surrounding region. For instance, Silicon Valley in California serves as an example, where the concentration of technology companies has generated significant economic prosperity and innovation, influencing development far beyond its immediate location.
The importance of this concept lies in its ability to strategically target investment and resources to catalyze regional economic growth. By focusing on specific sectors with high multiplier effects, these concentrated areas can drive innovation, attract skilled labor, and improve overall regional competitiveness. Historically, the concept has been utilized as a regional planning strategy to address uneven development and promote economic convergence across different regions within a country or economic union.