What is Increasing Returns

This chapter overhauls some fundamental theoretical principles commonly consulted when tackling a territorial analysis, and the implications that arise when the economic activity alters the genuine territorial status quo. The discussion will focus on the economic vein of this subject, although this perspective can also incorporate geographical, environmental, and urban approaches, inter alia. The emphasis will be put on the stubborn and ever-present phenomenon of agglomeration of economic activities, in some cases triggered by the exploitation of resources geographically pinpointed, or motivated by the exploitation of economies of scale, pecuniary externalities, or technological spillovers.