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The chapter introduces the flowchart approach, a theory for the construction of an industrial hub or an agglomeration that consists of segments such as physical infrastructure and regulation. The workflow is the dynamic process of building the segments of an agglomeration. Economies of sequence are defined as the selection of any two out of all the segments of an agglomeration and efficiently building them. The integration of all the economies of sequence into a flowchart approach represents the overall process of building an agglomeration. In the flowchart approach to a manufacturing industry agglomeration policy, the optimum sequence involves the construction of traffic infrastructure such as ports and highways, institutional reforms such as liberalization and the formation of one-stop services, the construction of industrial zones to reduce fixed costs, and the invitation to anchor firms. By way of example, the chapter presents the flowchart approach to an information and communications technology agglomeration. |
