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Detecting Spatial Clustering Using a Firm-Level Index

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Author Info

  • Tobias Scholl

    ()
    (Schumpeter Center for Clusters, Entrepreneurship and Innnovation, University of Frankfurt)

  • Thomas Brenner

    ()
    (Working Group on Economic Geography and Location Research, Philipps University Marburg)

Abstract

We present a new statistical method that detects industrial clusters at a firm level. The proposed method does not divide space into subunits whereby it is not affected by the Modifiable Areal Unit Problem (MAUP). Our metric differs both in its calculation and interpretation from existing distance-based metrics and shows four central properties that enable its meaningful usage for cluster analysis. The method fulfills all five criteria for a test of localization proposed by Duranton and Overman (2005).

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Bibliographic Info

Paper provided by Philipps University Marburg, Department of Geography in its series Working Papers on Innovation and Space with number 2012-02.

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Length: 29 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:pum:wpaper:2012-02

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Related research

Keywords: Spatial concentration; localization; clusters; MAUP; distanceâ€based measures;

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References

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  1. Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2009. "Spatial Localization in Manufacturing: A Cross-Country Analysis," Documents de Travail de l'OFCE, Observatoire Francais des Conjonctures Economiques (OFCE) 2009-07, Observatoire Francais des Conjonctures Economiques (OFCE).
  2. Hyun-Ju Koh & Nadine Riedel, 2009. "Assessing the Localization Pattern of German Manufacturing & Service Industries - A Distance Based Approach," Working Papers, Oxford University Centre for Business Taxation 0913, Oxford University Centre for Business Taxation.
  3. Glenn Ellison & Edward L. Glaeser & William Kerr, 2007. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," NBER Working Papers 13068, National Bureau of Economic Research, Inc.
  4. Thomas H. Klier & Daniel McMillen, 2006. "Evolving agglomeration in the U.S. auto supplier industry," Working Paper Series, Federal Reserve Bank of Chicago WP-06-20, Federal Reserve Bank of Chicago.
  5. Jacob J De Vries & Peter Nijkamp & Piet Rietveld, 2009. "Exponential or power distance-decay for commuting? An alternative specification," Environment and Planning A, Pion Ltd, London, Pion Ltd, London, vol. 41(2), pages 461-480, February.
  6. Reinhold Kosfeld & Hans-Friedrich Eckey & Jørgen Lauridsen, 2009. "Spatial Point Pattern Analysis and Industry Concentration," MAGKS Papers on Economics, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) 200916, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
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Citations

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Cited by:
  1. Tobias Scholl & Thomas Brenner & Martin Wendel, 2012. "Evolving localization patterns of company foundations - Evidence from the German MST-industry," Working Papers on Innovation and Space, Philipps University Marburg, Department of Geography 2012-05, Philipps University Marburg, Department of Geography.
  2. Tobias Scholl & Thomas Brenner, 2013. "Optimizing Distance-Based Methods for Big Data Analysis," Working Papers on Innovation and Space, Philipps University Marburg, Department of Geography 2013-09, Philipps University Marburg, Department of Geography.

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