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Essay text:
Untangling the paradox of location in a global economy reveals a number of key insights about how companies continually create competitive advantage. What happens inside companies is important, but clusters reveal that the immediate business environment outside companies plays a vital role as well. This role of locations has been long overlooked, despite striking evidence that innovation and competitive success in so many fields are geographically concentrated.
Full Text:
Copyright Harvard Business Review Nov/Dec 1998
[Headnote]
Paradoxically, the enduring competitive advantages in a global economy lie increasingly in local things -knowledge, relationships, and motivation that distant rivals cannot match...
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