With globalisation and knowledge-based production, firms may cooperate on a global scale, outsource parts of their administrative or productive units and negate location altogether. The extremely low transaction costs of data, information and knowledge seem to invalidate the theory of agglomeration and the spatial clustering of firms, going back to the classical work by Alfred Weber (1868-1958) and Alfred Marshall (1842-1924), who emphasized the microeconomic benefits of industrial collocation. This paper will argue against this view and show why the growth of knowledge societies will rather increase than decrease the relevance of location by creating knowledge clusters and knowledge hubs | MPRA Munich Personal RePEc Archive Knowledge hubs and knowledge clusters Designing a knowledge architecture for development. Evers Hans-Dieter Center for Development Research ZEF University of Bonn 2008 Online at http 8778 MPRA Paper No. 8778 posted 16. May 2008 17 21 ZEF Working Paper Series Department of Political and Cultural Change Center for Development Research Department of Political and Cultural Change Research Group Culture Knowledge and Development 27 Knowledge Hubs and Knowledge Clusters Designing a Knowledge Architecture for Development. Hans-Dieter Evers ISSN 1864-6638 Bonn 2008 Universitätbonn Center for Development Research University of Bonn ZEF Bonn 2 ZEF Working Paper Series ISSN 1864-6638 Department of Political and Cultural Change Center for Development Research University of Bonn Editors . Evers Solvay Gerke Peter Mollinga Conrad Schetter Nr. 1 Evers Hans-Dieter and Solvay Gerke 2005 . Closing the Digital Divide Southeast Asia s Path Towards a Knowledge Society. Nr. 2 Bhuiyan Shajahan and Hans-Dieter Evers 2005 . Social Capital and Sustainable Development Theories and Concepts. Nr. 3 Schetter Conrad 2005 . Ethnicity and the Political Reconstruction of Afghanistan. Nr. 4 Kassahun Samson 2005 . Social Capital and Community Efficacy. In Poor Localities of Addis Ababa Ethiopia. Nr. 5 Fuest Veronika 2005 . Policies Practices and Outcomes of Demand-oriented Community Water Supply in Ghana The National Community Water and Sanitation Programme 1994 - 2004. Nr. 6 Menkhoff Thomas and Hans-Dieter Evers 2005 . Strategic Groups in a Knowledge Society Knowledge Elites as Drivers of Biotechnology Development in Singapore. Nr. 7 Mollinga Peter P. 2005 . The Water Resources Policy Process in India Centralisation Polarisation and New Demands on Governance. Nr. 8 Evers Hans-Dieter 2005 . Wissen ist Macht Experten als Strategische Gruppe. Nr. 8a Evers Hans-Dieter and Solvay Gerke 2005 . Knowledge is Power Experts as Strategic Group. Nr.