Industrial districts, innovation and I-district effect: territory or industrial specialization?



3.2. Typology of local production systems in Spain and their
specializations

Data on innovation was compiled by address so that any level of territorial
aggregation is possible. The territorial units are the 806 local labour markets
in Spain (Boix and Galletto, 2008a) identified using the Italian Sforzi -
ISTAT (2006) methodology. The territorial typologies by LPS coincide with
Boix and Galletto (2008a) whereas the identification of the dominant
specialization comes from the third stage of the algorithm (Annex 1).
Departing from this methodology, seven types of LPS and sixteen dominant
specializations are identified:

1. Three types of manufacturing systems which cover 332 LPS: 205
Marshallian industrial districts specialized in manufacturing and basically
composed of SME; 66 manufacturing LPS specialized in large firms; and 61
LPS obtained as a residual since they are specialized in manufacturing
although they are not classified as industrial districts or manufacturing LPS
of large firms. Manufacturing LPS have nine specializations: Food and
beverages; Textile and clothing; Leather and footwear; Paper, publishing and
printing; Chemistry and plastics; Housing goods (wooden furniture, tiles and
other glass and ceramic items); Machinery, electrical and optical equipment;
Metal products; and Transport equipment.

2. Two types of service LPS which cover 106 LPS: 4 LPS belonging
to the central labour markets of the largest Spanish metropolitan areas; and
the other 102 LPS specialized in services. Service LPS are specialized in
Business services; Traditional services; Consumer services; and Social
services.

3. Two other categories including 333 LPS specialized in
Agricultural and Extractive activities, and 35 LPS specialized in
Construction.

4. THE MEASUREMENT OF THE TERRITORIAL AND
SPECIALIZATION EFFECTS

The results can be analyzed regarding three axes: territory, industry and a
combination of both. Regarding the interpretation of the results by territory
(Tables 2 and 3), the I-district effect arises with intensity. Marshallian
industrial districts (21% of national employment) generate 30.6% of Spanish
innovations and a ratio of 337 innovations per employee, 47% above the
national average, being the most innovative LPS in Spain. They are followed
by the four cores of the largest metropolitan areas (288 innovations per
employee and 25% above the national mean) and the Manufacturing LPS of
large firms (230 innovations per employee and 11% above the national

10



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