agglomeration economy

noun

: a localized economy in which a large number of companies, services, and industries exist in close proximity to one another and benefit from the cost reductions and gains in efficiency that result from this proximity

The existence of agglomeration economies can imply different things for local and national policymakers.

—Edward L. Glaeser, Agglomeration Economics, 2010

Word History

First Known Use

1975, in the meaning defined above

The Ultimate Dictionary Awaits

Expand your vocabulary and dive deeper into language with Merriam-Webster Unabridged.

1. Expanded definitions
2. Detailed etymologies
3. Advanced search tools
4. All ad-free

Discover what makes Merriam-Webster Unabridged the essential choice for true word lovers.

Start Your Free Trial Now