In the early days of industry, clustering happened because an area had advantages in natural resources that were used in a particular manufacturing process. Later, when many businesses became more reliant on knowledge than physical resources, there was clustering around universities like Cambridge in the UK and the so-called Research Triangle area of North Carolina in the USA.

The article points out, "Industry hubs happen when a big company, say Microsoft, Ubisoft, or Oracle, sets up shop and grows. After a few years, there are dozens of former employees lingering around the area, starting up their own companies, and making use of the talent that has been attracted to the area." It adds, "The concentration of eLearning companies in one area leads to the growth of a pool of skilled labor from which all may draw."

According to the article, which was published at the end of September, "Examples of companies in the Sheffield area that have spun out from other, larger local eLearning companies include PTK, set up nearly three years ago by Patrick FitzPatrick, and Xoolon, established some four years ago by Martin Spence, formerly of ACT ELearning and then Vantage. Others have moved within the industry."

Among these are Wendy Weller Davies, formerly of Sanderson CBT, Tata Interactive Systems, and Learning Light, which is now working for Kineo, recently named the second- largest eLearning developer in the U.K. with more than $8 million in annual turnover. Another is Keith Downes, who left Peakdean Interactive to set up the Sheffield office of LINE, the U.K.'s largest eLearning developer, generating some $11 million a year.

The article went on to say, "Another reason the city of Sheffield appears to be establishing itself as the capital of the U.K.'s eLearning industry is the presence of the headquarters of Learning Light, established in 2006, which is a centre of excellence in the use of eLearning and learning technologies in the workplace."

Learning Light researches and produces the only independent market analysis reports on the UK's eLearning industry - and is currently working on its third such report, which is due for publication in November.

Learning Light's David Patterson comments, "Key eLearning-related knowledge and skills are now well represented among the working population in the Sheffield area. This is helping to attract eLearning content and systems developers to set up in and around the city. So we're beginning to see a virtuous circle develop, which should continue to benefit both the industry and the area by continuing to provide more and more eLearning-related jobs - and the people to do them!"

The eLearn magazine's article concludes, "It's interesting that Sheffield, having grown prosperous in the 19th century through becoming noted for making steel and steel products, should be following a similar (clustering) path in the digital age to bring further prosperity through attracting eLearning and other digital industry producers."