Distance-based measures of spatial concentration: introducing a relative density function

For more than a decade, distance-based methods have been widely employed and constantly improved in spatial economics. These methods are a very useful tool for accurately evaluating the spatial distribution of economic activity. We introduce a new distance-based statistical measure for evaluating the spatial concentration of industries. The m function is the first relative density function to be proposed in economics. This tool supplements the typology of distance-based methods recently drawn up by Marcon and Puech (J Econ Geogr 3(4):409–428, 2003). By considering several simulated and real examples, we show the advantages and the limits of the m function for detecting spatial structures in economics.