Agglomeration in The Flexible Working Era: The Micro-location Choices of Co-working Spaces

Would physical location become less essential when work and communication are not limited to a fixed space? We explore the question with the micro-location choices of coworking spaces (CWS) in London. The empirical results show that the CWS tend to choose districts with more “teleworkable” jobs and high reliance on tacit knowledge in local industries. CWS also tends to co-locate with startup firms, echoing the different influences of knowledge spillover in firms’ life cycles. The study highlights how CWS facilitates businesses in a digitalised and more collaborative economy, carrying implications for business empowerment and local urban patterns.