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The Role Of Destination Spatial Spillovers And Technological Intensity In The Location Of Manufacturing And Servicesâ´ Firms


  • Andrés Artal Tur
  • José Miguel Navarro Azorín
  • María Luisa Alamá Sabater
  • Antonio García Sánchez


Focusing on the characteristics of destinations, this paper pursues to identify the role of spatial spillovers in driving location choices of manufacturing and services´ firms. With this objective a spatial conditional logit framework is defined, allowing for neighbourhood-related spatial effects. Additionally, a broad indicator of spatial spillovers generated by a given destination is proposed. The model is then applied to empirically capture the behaviour of 1.092.864 new firms established in 316 municipalities of the Spanish Mediterranean Arc (SMA) between 1998 and 2008. Estimation results show that such spatial effects have a remarkable impact on the location decisions of industrial companies relative to those of services. When the sample is splitted out by technological intensity of activities, it can be observed that spatial spillovers are more willing to affect decisions of high-tech companies relative to those of low-tech ones, particularly for industrial activities.

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  • Andrés Artal Tur & José Miguel Navarro Azorín & María Luisa Alamá Sabater & Antonio García Sánchez, 2011. "The Role Of Destination Spatial Spillovers And Technological Intensity In The Location Of Manufacturing And Servicesâ´ Firms," ERSA conference papers ersa11p777, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p777

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    1. Göran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
    2. Head, Keith & Ries, John & Swenson, Deborah, 1995. "Agglomeration benefits and location choice: Evidence from Japanese manufacturing investments in the United States," Journal of International Economics, Elsevier, vol. 38(3-4), pages 223-247, May.
    3. Paulo Guimaraes & Octávio Figueiredo & Douglas Woodward, 2004. "Industrial Location Modeling: Extending the Random Utility Framework," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 1-20.
    4. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
    5. Josep-Maria Arauzo-Carod, 2008. "Industrial Location At A Local Level: Comments On The Territorial Level Of The Analysis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(2), pages 193-208, April.
    6. J. Barkley Rosser, 2009. "Introduction," Chapters,in: Handbook of Research on Complexity, chapter 1 Edward Elgar Publishing.
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