Abstract
What are the main mechanisms driving the process of industry clustering? Research has produced an unresolved tension between two different perspectives: the roles played by (i) agglomeration economies, and (ii) knowledge legacies passed on from parents to spawns or spinoffs. Using qualitative interviews and archival data analysis, this paper tracks the evolution of the ceramic tile cluster of Castellon since its inception in 1727. The results show the influences over time of certain key agglomeration mechanisms, including: co-operation agreements between local incumbent rivals to create new ventures, contradicting the Klepper disagreement-based assumption; the influence of a pervasive local insider status; and the role of complex family business groups. The overall conclusion is that the spatial concentration of an industry can be attributed to the benefits of agglomeration in combination with the influence of spinoffs, in a complementary and synergistic process. Results suggest that the Klepper model is incomplete.
