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Detecting Spatial Clustering Using a Firm-Level Index

  • 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)

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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File URL: ftp://137.248.191.199/RePEc/pum/wpaper/wp0212.pdf
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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
Contact details of provider: Postal: Deutschhausstrasse 10, 35032 Marburg
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Fax: 064212828950
Web page: http://www.uni-marburg.de/fb19/
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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 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 0913, Oxford University Centre for Business Taxation.
  3. Jacob J. De Vries & Peter Nijkamp & Piet Rietveld, 2005. "Exponential or power distance-decay for commuting? An alternative specification," ERSA conference papers ersa05p261, European Regional Science Association.
  4. 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.
  5. Reinhold Kosfeld & Hans-Friedrich Eckey & Jørgen Lauridsen, 2011. "Spatial point pattern analysis and industry concentration," The Annals of Regional Science, Springer, vol. 47(2), pages 311-328, October.
  6. Thomas H. Klier & Daniel McMillen, 2006. "Evolving agglomeration in the U.S. auto supplier industry," Working Paper Series WP-06-20, Federal Reserve Bank of Chicago.
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