The high tech firms of silicon valley in California are clustered together to take the advantage of agglomeration effects.
Silicon Valley is the area of northern California where there are thousands of companies doing innovation and has technology. Thus it is global center for technological innovation.
The silicon valley is the economies of agglomeration as there various high tech comes set up near to each other which is beneficial of each other in growth and innovation.
Thus high tech companies takes the advantages of agglomeration effect.
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