Industrial districts are specific areas where businesses and industries are concentrated, often leading to increased efficiency and collaboration. These districts typically feature a mix of manufacturing, warehousing, and service industries, allowing companies to share resources, labor, and infrastructure. This clustering can enhance productivity and innovation due to the close proximity of suppliers and customers. Many industrial districts are strategically located near transportation hubs, such as ports or highways, facilitating the movement of goods. Examples include the Silicon Valley for technology and Detroit for automotive manufacturing. These regions often benefit from specialized labor pools and support services tailored to their industries.