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Some economists have concluded that more than half the variation in output per worker across the United States can be explained by density alone; density explains more of the productivity gap across states than education levels or industry concentrations or tax policies.
Such industry concentrations may make a lot of sense for reaping capital gains in equities, but they increase risk for income investors.
"Industry concentrations are not unique to tech: Oil / Gas in Houston, Mining in Perth (Australia) / Vancouver / South Africa, Textiles / Electronics / Manufacturing around Guangzhou / Milan, etc. Comparatively, these industries look and smell like Silicon Valley by way of dynamism, money / returns, way the labor markets move, etc".
"The two highest industry concentrations in the city and county of Los Angeles are apparel manufacturing and motion pictures," says William C. Allen, president of the Economic Development Corporation.
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Industry concentration in general was associated with higher gender wage gaps, and when those concentrated industries were made to face increased international competition, they had both falling wage gaps and rising female employment over this period.
Mr. Luter also scoffs at the idea of dangerous industry concentration.
Readers React In journalism school in the 1990s, we debated the consequences of media industry concentration.
Yet that is precisely the conclusion of the new study, "On the Industry Concentration of Actively Managed Mutual Funds, " at http://papers.ssrn.com/sol3/papers.cfm?abstract-id=353420.
John Shepard Wiley Jr., a professor of law and authority of antitrust at the University of California at Los Angeles, said, "In the airline industry, concentration is feared by government antitrust enforcers because the prospect of cartels has been a past and proven threat".
The biotechnology companies are battling while farmers, agricultural academics and consumer groups are growing increasingly concerned about climbing seed prices and industry concentration, which they say restricts the supply of seeds that have not been genetically modified.
Citigroup can attest to that, and of course, I would guess that lobbying clout is directly related to levels of industry concentration.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com