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The Location Quotient – Assembly and application of methodological enhancements

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  • Strotebeck, Falk

Abstract

The location quotient is an easy to use and often used indicator for identifying the clustering of industries, even though it struggles with some problems. This paper assembles different kinds of enhancements of the coefficient taken from the literature, which offer improvements regarding both the accurateness of the quotient and the interpretation of the results. This paper also combines two existing methodological enhancements in a new way and further applies the methods to analyze the localisation of the biotechnology industry in Germany, using data, taken from the BIOCOM Year- and Addressbook of 2005.

Suggested Citation

  • Strotebeck, Falk, 2010. "The Location Quotient – Assembly and application of methodological enhancements," MPRA Paper 47988, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:47988
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    Cited by:

    1. Gugler Philippe, 2019. "Assessing the competitiveness of locations: A journey through the major theoretical insights," Economics and Business Review, Sciendo, vol. 5(3), pages 16-34, September.

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    More about this item

    Keywords

    location quotient; coefficient of localization; decomposition; cluster;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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