The extant literature on industry-cluster identification recommends the use of both quantitative and qualitative data to uncover clusters. We argue for a functionalist approach to identifying clusters. The logic here is that since spatial proximity of firms is an observed fact, attempts to uncover business clusters should begin with a statistical test of the randomness of firm density in a region. Rejection of this hypothesis should lead to an inter-firm analysis that identifies the relationships among firms in the region. Data from a regional area in the state of Queensland, Australia, are employed to demonstrate the applicability of the proposed framework.
No takes yet. Share an insight, caveat, or question.
Athiyaman et al. (2008) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: