By Pontus Braunerhjelm, Maryann P. Feldman
Clusters - local concentrations of similar agencies and firms - are visible as a massive portion of fiscal progress and innovation. yet there's little realizing of the way clusters come into lifestyles, and little information supplied at the position of guidelines in selling this. Cluster Genesis specializes in those early origins of clusters.
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Additional resources for Cluster Genesis: Technology-Based Industrial Development
Bordwell, Staiger, and Thompson 1985; Jacobs 1939; Musser 1994). Most of the details need not detain us here. At the turn of the century production was concentrated in the New York– New Jersey metropolitan area, the two leading ﬁrms being Edison Manufacturing Company and the American Mutoscope and Biograph Company. Films at this time comprised diverse short subjects projected in store-front theaters or nickelodeons. In the ﬁrst decade of the twentieth century, audiences grew rapidly, and the number of production companies expanded greatly in the New York–New Jersey area as well as in other selected parts of northeast.
However, most of these companies were headquartered in the northeast, and the biggest studios by far were all still located in the New York area, which remained at this time the main center of motion-picture production in the USA. It is one of the ironies of modern Hollywood, given the recurrent complaints that have been made over the last couple of decades about ‘runaway production’, that its own earliest stirrings came about as a result of a process of locational decentralization. Hollywood Emergent An alert observer scanning the motion-picture production industry in the USA in the year 1912 or 1913 would have noted the continued dominance of New York, the minor recent clustering of decentralized production units in Jacksonville and Los Angeles, and a scattering of studios in many other parts of the country.
In the ﬁrst place, the big ﬁve studios were aggressively engaged in vertical integration of all three main phases of the motion-picture business, namely, production, distribution, and exhibition. By the late 1920s the big ﬁve controlled signiﬁcant segments of the entire industry and exercised something close to monopoly power over ﬁrst-run theaters. In cases where they did not own the theaters, they were nevertheless able to circumvent open market competition by means of blind-booking and block-booking strategies (Huettig 1944).