When it comes to business innovation in the United States, the landscape is uneven. From computer companies clustered near Silicon Valley to car manufacturers parked side-by-side in Detroit, firms in many industries tend to gravitate towards distinct regions of the country. The economies of agglomeration explain the phenomenon, since competitors located near one another can see lower production costs while boosting specialization. That's why most hip and knee replacement devices in the United States, for example, are manufactured by firms in Warsaw, Indiana and most heart pacemakers companies have operations in the Twin Cities. There's even a geographic aspect to the office furniture business, since the three largest manufacturers of cubicles, chairs and desks in the United States all are based near the Western Michigan town of Zeeland.
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