A cluster of firms with high innovation productivity will discourage other firms from establishing themselves in the same area.

Question

Quizplus · Accepted Answer

A cluster of firms with high innovation productivity may actually attract other firms to establish themselves in the same area. The presence of successful firms and their supporting infrastructure can create a beneficial environment for new businesses to thrive. It can also lead to knowledge spillovers and collaborations within the local industry, ultimately increasing the overall innovation productivity of the region.

A Cluster of Firms with High Innovation Productivity Will Discourage