Munich Personal RePEc Archive

A Measure for identifying substantial geographic Concentrations

van Egeraat, Chris and Morgenroth, Edgar and Kroes, Rutger and Curran, Declan and Gleeson, Justin (2015): A Measure for identifying substantial geographic Concentrations.

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Regional industrial policy emphasizes the notion of building on existing concentrations of competitive firms. A range of measures to identify such concentrations has been put forward in the literature. These however do not identify substantial concentrations which have the best potential for further development, tend to concentrate on scale measured by employment and are applied using data for pre-specified administrative boundaries. This paper presents a new concentration index that identifies substantial concentrations and utilizes information on both the number and scale of plants. It also proposes a method for generating relevant industry-specific spatial units.

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