Economics: The Basics 1st Edition by Mike Mandel

Exercise 7

There's a very heavy concentration of biotechnology firms in the Boston area, closely attached to the Massachusetts Institute of Technology. This concentration of biotech is usually considered one of the premier innovation clusters in the United States.
a) If you were starting a new biotech company, what would be the advantages of locating in the Boston area? (Hint: Think about the inputs to a biotech company, such as highly trained scientists and special technical equipment.)b) If you are a biotech scientist, what would be the advantage of moving to the Boston area?
c) Another innovation cluster is the television/movie industry cluster, located in Los Angeles. Most of the major movie and television studios are based in the area, along with talent agencies, entertainment lawyers, stunt men (and women) and other related businesses. If you were starting a new independent movie studio, what would be the pluses and minuses of locating in Los Angeles?