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



labour market. The case of only one medium firm in the local dominant
industry when this firm shares more employment than the remaining small
firms is considered an exception to the criteria. Otherwise, an LPS is
considered to be composed of large firms.

d) Departing from the previous quotients, a manufacturing LPS is
considered to be an industrial district if it is specialized overall in small or
medium enterprises, its dominant industry is mainly composed of SME and
its dominant industry has at least 250 employees in the LPS (similar to a
large firm) (Boix and Galletto 2008b). A manufacturing LPS is considered to
be a manufacturing LPS composed of large firms if it is specialized in large
firms and its dominant industry is mainly composed of large firms. The
remaining manufacturing LPS are assigned to a residual category.

3. Due to the special features of the centres in largest metropolitan
agglomerations, service LPS are divided into metropolitan and non
metropolitan. Metropolitan LPS are considered the centres of the largest
metropolitan areas that are specialized in services: Madrid, Barcelona, Seville
and Bilbao. The metropolitan area of Valencia (the third largest area of the
country) is specialized in manufacturing and is included in the industrial
districts group.

The procedure generates a basic division into seven territorial
categories and sixteen dominant specializations:

- Agricultural, Extractive and Construction LPS, where the three are
monospecialized.

- Manufacturing LPS, divided into industrial districts, manufacturing
LPS of large firms and the rest. They can be specialized in Textile and
clothing; Leather and footwear; Housing goods; Jewellery, musical
instruments and toys; Food and beverages; Machinery, electrical and optical
equipment; Manufacture of basic metals and fabricated metal products;
Chemicals and plastics; Transport equipment; Paper, publishing and printing.

- Services LPS, divided into metropolitan and non metropolitan.
These can be specialized in Business services; Consumer services; Social
services; and Traditional services.

28



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