Research on the “Agglomeration Economies” model-analysis of the development of high technology zone

We have presented the agglomeration economies model using the system dynamics model, drawing from the practices of the Beijing Municipality Experimental Zone for the Development of New Technology Industries (the Beijing Experimental Zone). Our agglomeration economies model describes the critical mass required for high technology zone development. It also captures phenomenon that when the factors affecting the agglomeration economies react on one another to reach the critical mass, the zone develops at high speed. We find that the most important factor reflecting the agglomeration economies is the policy guidance of the Chinese government in the zone