Industrial Agglomeration and Transportation

There are two opposite spatial characteristics for production systems:

• Diffusion. Represents industrial activities gaining from numerous but specific local / regional advantages, such as resources or labor. Its main drawback resides in the linkages between the elements that can be difficult to maintain if transport costs are high and/or if transportation has insufficient physical capacity. This system can also be a reflection of relative autarky.
• Agglomeration. Represents industrial activities taking advantage of increased interactions when they locate close to one other. Consequently, transportation and coordination costs are lower. Linkages between zones of agglomeration are generally serviced by high capacity transport corridors. If this process occurs for some duration, an industrial complex (or cluster) may emerge through cumulative agglomeration.