levo

Changing Places

The knowledge economy and clusters

  • 3 things to know
  • AS Unit 2

Overview

Knowledge economy, cluster in economic geography and why proximity to a university encourages a cluster to grow.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Name four types of knowledge economy cluster.

Key term

Define a cluster in economic geography.

Key term

Explain why proximity to a university encourages a cluster to grow.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is the knowledge economy?

    Model answer

    The knowledge economy is the part of the economy in which value comes from the creation and application of knowledge rather than from making goods.

  2. 2

    Name four types of knowledge economy cluster.

    Model answer

    Higher education and research, creative and cultural industries, digital and information technology, and science and biotechnology.

  3. 3

    Define a cluster in economic geography.

    Model answer

    A cluster is a concentration of related firms and institutions in one area, which benefit from being close to each other.

  4. 4

    Explain why proximity to a university encourages a cluster to grow.

    Model answer

    The university supplies graduates, research and laboratory facilities, and spin-out companies form around the ideas it generates.

  5. 5

    Name three further locational factors that attract quaternary firms.

    Model answer

    Government support and funding, planning regulations that permit development, and infrastructure including transport and high-capacity broadband.

  6. 6

    What are agglomeration economies?

    Model answer

    Agglomeration economies are the cost and productivity advantages firms gain from clustering, including shared suppliers, a pooled labour market and the rapid spread of ideas.

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