TECHNOLOGY SYSTEMS

Development of Technology and Information Cluster

Development of Technology and Information Cluster

Introduction

Geographical Proximity and Tactic

Although the factors leading to agglomeration economies, gentle Wind differ, which was there and checked for the location of industrial firms the industrialists were also for businesses. In practice, the regrouping of stores offering similar products has been long been observed, the clothing stores are increasing in shopping malls, car dealers are, in most cases, very close to each other. However, most of the work was interesting in the group of pro- products complementary but not interchangeable. However, it is possible to consider the geographical proximity of firms offering perfectly substitutable products or services. It was shown long ago that if market demand and linear uniformly distributed, the equilibrium of two pro-sellers posing perfectly substitutable products is reached, when the so-fluctuations of geographic differentiation is minimal, that is to say when they are located side by side in the middle market (Rallet & Torre, 2000, 373).

It is necessary to go further in the study of strategies for location in business beyond the single sites companies interested in multi units. Because of their specificity structural, multi-unit firms can increase research proximity vis-à-vis their competitors. Whether to promote cooperation, to attack a competitor or attempt to interfere, the geographical proximity is not the result of a simple process addition to mechanical as in the model, but becomes a real, deliberate strategy. Mutualism through the establishment of relations between enterprises, it is involving some level of investment of money and temporal. Indeed, it is necessary to establish more or structures less formal promoting exchanges and cooperation to develop policies and projects. It is to establish patterns of distribution of the positive effects of agglomeration and ensure their application. Controls are also needed to ensure that everyone participates in the collective effort in the same proportions that the positive effects removed.

Geographical proximity may enable multi-enterprise units to promote common behaviour. More companies' multi units are points of contact; because of this proximity between geographical units like the more they are depending on the same resources. In this case, all have an interest in insurance protection and security through cooperative relationships. In addition, geographic proximity facilitates cooperation. Indeed, more companies are found on the market, the more they know, and therefore, the more they are likely to cooperate more or less tacitly (Krugman, 1991, 345).

Discussion

Multiplication contact points are also a means of increasing areas potential retaliation, which may help deter attacks competitors and force them to cooperate. The days of the same markets and influence the intensity of competition in fostering the emergence of mutual forbearance among competitors and policies such as "live and let live". Competitors must be of relatively similar in size in order to behave mutually. In an emergency unbalanced, the company in a position of superiority may be more inclining to seek to exclude the weakest competitor in the market. More companies are fighting for same limited resources, targeting the same markets or covet the same ...