ABSTRACT

Few industries are as spatially highly concentrated worldwide as the motion picture industry in the Los Angeles and Hollywood area of the US west coast (referred to in this chapter as 'Hollywood') and the reasons for such concentration are a topic of longstanding interest in economic geography. In the early 1990s, Porter (1990) referred to these spatial concentrations of economic activities as clusters. Since then numerous studies and much empirical work has been published emphasising the advantages of spatial proximity for co-localised enterprises within a cluster. But these advantages do not offer sufficient explanation for the continued existence and growth of a cluster. Linkages across cluster boundaries are also significant for the success or stagnation of a cluster. Here, distribution structures to external markets are of central relevance because they generate the revenue stream that maintains economic existence of the enterprises within a cluster. In other words, a cluster's success depends on the effective distribution of its products on external markets.