Abstract
Most cluster-based economic development programs use co-location to initially identify the spatial footprint of cluster areas. Geographic proximity (co- location) is a necessary, but not a sufficient, condition for potential clustering activity. Therefore, an assessment of industry location and density patterns becomes the first phase in the identification of potential cluster regions to be included in a cluster driven development policy. This paper compares the use of location quotients and Getis–Ord G i * in the identification of potential cluster regions in the transportation equipment industry of four states in the Midwestern USA. Also, both location quotients and G i * are used to classify counties with respect to their concentration of transportation equipment manufacturing.
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This research is funded by US Department of Commerce, Economic Development Administration grant #06-66-05054-01.
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Carroll, M.C., Reid, N. & Smith, B.W. Location quotients versus spatial autocorrelation in identifying potential cluster regions. Ann Reg Sci 42, 449–463 (2008). https://doi.org/10.1007/s00168-007-0163-1
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DOI: https://doi.org/10.1007/s00168-007-0163-1