ABSTRACTThis paper uses an evolutionary simulation model of technical and locational adjustment to refine concepts of labor‐ and output‐market segmentation within an industry. The simulation model focuses on differences among establishments arising from different strategic orientations. In particular, there are significant differences in establishments' likelihoods of relocation within a heterogeneous landscape. Empirically testable hypotheses are suggested for subsequent analyses of intraindustry evolution and local impa