Are there really high-tech clusters? The geographic concentration of German manufacturing industries and its determinants

The agglomeration of industries has recently received much interest both in empirical and theoretical works time. Especially in Germany politicians became inspired by the notion of high-technology industry clusters, and regional policy has seen a wave of initiatives aiming at the formation of such clusters. This paper explores in a systematic way the geographic concentration of German manufacturing industries and relates it to industry characteristics and agglomeration forces proposed by theory. The main finding is that there is no general relationship between agglomeration and high-technology related business which suggests that hope put in the fast and effective development of “high-tech” clusters might see some disappointments in the future.