What term refers to the location of competing companies near eachâ other?

Clustering

Explanation:

Clustering in business sense is concentration of similar type of companies, suppliers and companies associated with them in a particular geographical location. Geographical proximity tends to collectively improve the productivity of all the companies. The reason behind this is that it increases competitiveness, quickens the supply of goods and services necessary for carrying out business activities.

One of the examples of this could be Silicon Valley in California which is hub of technology-oriented companies.