IDEAS home Printed from https://ideas.repec.org/a/spr/lsprsc/v8y2015i3p307-334.html
   My bibliography  Save this article

Using light-at-night (LAN) satellite data for identifying clusters of economic activities in Europe

Author

Listed:
  • Natalya Rybnikova
  • Boris Portnov

Abstract

Enterprises organized in clusters are often efficient in stimulating urban development, productivity and profit outflows. Identifying the clusters of economic activities thus becomes an important step in devising regional development policies, aimed at the formation of clusters of economic activities in geographic areas in which this objective is desirable. However, a major problem with the identification of such clusters stems from limited reporting by individual countries and administrative entities on the regional distribution of specific economic activities, especially for small regional subdivisions. In this study, we test a possibility that missing data on geographic concentrations of economic activities in the European NUTS3 regions can be reconstructed using light-at-night satellite measurements, and that such reconstructed data can then be used for cluster identification. The matter is that light-at-night, captured by satellite sensors, is characterized by different intensity, depending on its source—production facilities, services, etc. As a result, light-at-night can become a marker of different types of economic activities, a hypothesis that the present study confirms. In particular, as the present analysis indicates, average light-at-night intensities emitted from NUTS3 regions help to explain up to 94 % variance in the areal density of several types of economic activities, performing especially well for professional, scientific and technical services $$({R}^{2}=0.742{-}0.939)$$ ( R 2 = 0.742 - 0.939 ) , public administration $$({R}^{2}=0.642{-}0.934)$$ ( R 2 = 0.642 - 0.934 ) , as well as for arts, entertainment and recreation $$(\hbox {R}^{2}=0.718{-}0.934)$$ ( R 2 = 0.718 - 0.934 ) . As a result, clusters of these economic activities can be identified using light-at-night data, thus helping to supplement missing information and assist regional analysis. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Natalya Rybnikova & Boris Portnov, 2015. "Using light-at-night (LAN) satellite data for identifying clusters of economic activities in Europe," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 307-334, November.
  • Handle: RePEc:spr:lsprsc:v:8:y:2015:i:3:p:307-334
    DOI: 10.1007/s12076-015-0143-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s12076-015-0143-5
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s12076-015-0143-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Boris A. Portnov & Moshe Schwartz, 2009. "Urban Clusters As Growth Foci," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 287-310, May.
    2. Pierre Desrochers & Frederic Sautet, 2004. "Cluster-Based Economic Strategy, Facilitation Policy and the Market Process," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 17(2_3), pages 233-245, June.
    3. Fujita , Masahisa & Krugman, Paul, 2004. "The new economic geography: Past, present and the future," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 4, pages 177-206.
    4. Christian H.M. Ketels & Olga Memedovic, 2008. "From clusters to cluster-based economic development," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 375-392.
    5. Paul Krugman, 2011. "The New Economic Geography, Now Middle-aged," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 1-7.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    7. Ian R. Gordon & Philip McCann, 2000. "Industrial Clusters: Complexes, Agglomeration and/or Social Networks?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 513-532, March.
    8. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    9. Boris A. PORTNOV, 2012. "Does The Choice Of Geographic Units Matter For The Validation Of Gibrat'S Law?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 36, pages 79-106.
    10. Heikki Loikkanen & Marja Riihelä & Risto Sullström, 2003. "Regional income convergence and inequality in boom and bust. Results from micro data in Finland 1971-2000, and especially during the 1990s," ERSA conference papers ersa03p514, European Regional Science Association.
    11. Rajendra Kulkarni & Kingsley Haynes & Roger Stough & James Riggle, 2011. "Light based growth indicator (LBGI): exploratory analysis of developing a proxy for local economic growth based on night lights," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(2), pages 101-113, June.
    12. Doll, Christopher N.H. & Muller, Jan-Peter & Morley, Jeremy G., 2006. "Mapping regional economic activity from night-time light satellite imagery," Ecological Economics, Elsevier, vol. 57(1), pages 75-92, April.
    13. Juan Cuadrado-Roura & Luis Rubalcaba-Bermejo, 1998. "Specialization and Competition amongst European Cities: A New Approach through Fair and Exhibition Activities," Regional Studies, Taylor & Francis Journals, vol. 32(2), pages 133-147.
    14. Boris A. Portnov & Daniel Felsenstein, 2005. "Measuring Regional Disparities in Small Countries," ERSA conference papers ersa05p136, European Regional Science Association.
    15. Zhao, Naizhuo & Currit, Nate & Samson, Eric, 2011. "Net primary production and gross domestic product in China derived from satellite imagery," Ecological Economics, Elsevier, vol. 70(5), pages 921-928, March.
    16. Morgenroth, Edgar, 2008. "Exploring the Economic Geography of Ireland," Papers WP271, Economic and Social Research Institute (ESRI).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jutta Günther & Dirk Meissner, 2017. "Clusters as Innovative Melting Pots?—the Meaning of Cluster Management for Knowledge Diffusion in Clusters," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 499-512, June.
    2. Shanming Jia & Chenglin Qin & Xinyue Ye, 2018. "The evolution of regional multi-pole growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 189-207, July.
    3. Josean Garrués Irurzun & Juan Antonio Rubio Mondéjar, 2011. "Redes empresariales e integración económica regional en perspectiva histórica: el caso de Andalucía," FEG Working Paper Series 04/11, Faculty of Economics and Business (University of Granada).
    4. Kaitila, Ville, 2013. "Specialisation and/or Convergence: Structure of European Exports and Production," ETLA Working Papers 12, The Research Institute of the Finnish Economy.
    5. Aguilar, Francisco X., 2009. "Spatial econometric analysis of location drivers in a renewable resource-based industry: The U.S. South Lumber Industry," Forest Policy and Economics, Elsevier, vol. 11(3), pages 184-193, May.
    6. José M. Gaspar, 2020. "Paul Krugman: contributions to Geography and Trade," Letters in Spatial and Resource Sciences, Springer, vol. 13(1), pages 99-115, April.
    7. Santos, Antonio Bob, 2015. "Open Innovation in clusters: The Portuguese case," MPRA Paper 70032, University Library of Munich, Germany.
    8. Goerzen, Anthony, 2018. "Small Firm Boundary-spanning via Bridging Ties: Achieving International Connectivity via Cross-border Inter-cluster Alliances," Journal of International Management, Elsevier, vol. 24(2), pages 153-164.
    9. Argentino Pessoa, 2014. "Agglomeration and regional growth policy: externalities versus comparative advantages," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 1-27, August.
    10. Emanuel Shachmurove & Yochanan Shachmurove, 2010. "Location, Location, Location: Entrepreneurial Finance Meets Economic Geography," PIER Working Paper Archive 10-030, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    11. Samira Oukarfi & Maurice Baslé, 2009. "Public-sector financial incentives for business relocation and effectiveness measures based on company profile and geographic zone," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 509-526, June.
    12. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    13. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    14. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    15. Pokharel, Ramesh & Bertolini, Luca & te Brömmelstroet, Marco & Acharya, Surya Raj, 2021. "Spatio-temporal evolution of cities and regional economic development in Nepal: Does transport infrastructure matter?," Journal of Transport Geography, Elsevier, vol. 90(C).
    16. KEOGAN, Lucia & CALA, Carla Daniela & BELMARTINO, Andrea, 2020. "Perfiles Sectoriales De Especialización Productiva En Las Provincias Argentinas: Distribución Intersectorial Del Empleo Entre 1996 Y 2014," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 20(1), pages 59-76.
    17. Cezar TECLEAN & Gabriela DRÄ‚GAN, 2020. "How to measure territorial accessibility. An accessibility evaluation model applied in the European Union space," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 26-47, December.
    18. Jiang He & M. Hosein Fallah, 2014. "Dynamics of Inventor Networks and the Evolution of Technology Clusters," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(6), pages 2174-2200, November.
    19. Pradhan, Jaya Prakash & Zohair, Mohammad, 2014. "Subnational Export Performance and Determinants: Evidence from Two Indian States," MPRA Paper 60029, University Library of Munich, Germany.
    20. Marisol Velazquez, 2014. "Commercialization and consumption of coffee in Mexico," ERSA conference papers ersa14p1681, European Regional Science Association.

    More about this item

    Keywords

    Economic activities; Clusters; Satellite photometry; Light-at-night; Europe; Nomenclature of Territorial Units for Statistics (NUTS); C13; C38; O52;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lsprsc:v:8:y:2015:i:3:p:307-334. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.springer.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.