It is fairly common for an industrial cluster to break up and for production to move to locations with lower wages when the technology of the industry is no longer rapidly improving-when it is no longer essential to have the absolutely most modern machinery, when the need for highly skilled workers has declined, and when being at the cutting edge of innovation conveys only a small advantage. Explain this tendency of industrial clusters to break up in terms of the theory of external economies. As technological change and innovation slows in an industry, 0 A, specialized suppliers, labor market pooling, and knowledge spillovers, which are the reasons clusters are more efficient than O B. specialized suppliers and labor market pooling, which are the reasons clusters are more efficient than individual firms become less OC. low wage countries will be able to reverse engineer products and produce them at a lower cost; thus, the cluster will lose its cost O D. knowledge spillovers will enable production to become efficient in low wage countries, thus, firms will seek out low cost production individual firms, become less important; thus, firms will seek out low cost production locations and the cluster will breakdown. important; thus, firms will seek out low cost production locations and the cluster will breakdown. advantage and breakdown. locations and the cluster will breakdown