Agglomeration in action

Good news for Edinburgh and the renewables industry in Scotland with the announcement of a wind turbine manufacturing plant in Leith. This comes shortly after other relevant announcements: offshore servicing in Nigg in Easter Ross, green finance with the Green Investment Bank in Edinburgh; and follows on from news of other renewables manufacturing plants in Dundee and Methil, and renewables R&D facilities in Glasgow and Edinburgh.

As well as being fantastic news for jobs in Scotland, it is an example of economic theory in action - the theory in question being the new economic geography developed by Paul Krugman which predicts and explains clusters of related activity.