Events and Meetings of Italian Statistical Society, Advances in Latent Variables - Methods, Models and Applications

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Measuring spatial clustering of firms while controlling for latent spatial heterogeneity. An approach based on micro-geographic data
Diego Giuliani, Maria Michela Dickson, Giuseppe Espa

Last modified: 2013-06-14


The tendency of economic activities to cluster in a specific territory is well recognized. This phenomenon is not fortuitous, by concentrating in some areas firmsenjoy a number of advantages, which then have implications for local economic growth and regional disparities and, as a consequence, are object of study in the fields of economics, geography and policy making. In this paper we propose a method to assess spatial clustering of firms using microgeographic data. In particular, we define a parametric approach based on the so-called inhomogeneous K-function (Baddeley et al. 2000), a tool that produces an absolute measure of spatial clustering while controlling for the presence of latent spatial heterogeneity. In order to demonstrate the advantages of the proposed method, we proceed with the study of the spatial distribution of high- and medium-high technology manufacturing firms in Trento (Italy) in 2009.

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