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The implementation of the innovation-driven development strategy is of practical significance for improving the quality and efficiency of economic growth and accelerating the transformation of economic development mode. The purpose of this paper is to study the impact of innovation-driven strategies on marine industry agglomeration and industrial transformation.

In traditional grey correlation analysis, when the positive and negative areas cancel each other out during the integration process, the calculation result of the correlation degree is often inconsistent with the qualitative analysis. For this reason, from the perspective of curve similarity, this paper constructs two response curves through the relative change area of the two curves and the relative area change ratio of similar degree, thus constructing an improved grey relational model.

The authors find that the innovation investment has a better correlation with marine industrial agglomeration. It also found that Guangdong Province has the highest degree of correlation between innovation indicators and marine industrial agglomeration. Much beyond the authors’ expectation, in the areas where marine industrial agglomeration is high, the synergistic effect is not obvious by using the location entropy method.

The improved grey correlation analysis method can effectively overcome the phenomenon that the positive and negative areas cancel each other in the integration process of the original algorithm, and it can also effectively measure the negative correlation between variables. This paper explores the impact of innovation drive on the agglomeration of marine industries, which is of great significance to the sustainable development of marine economy.

From the intra- and inter-regional dimensions, this paper investigates the linkage between industrial agglomeration and inventory performance, and further demonstrates the moderating role of firm size and enterprise status in the supply chain on this linkage.

Using a large panel dataset of Chinese manufacturers in the Yangtze River Delta for the period from 2008 to 2013, this study employs the method of spatial econometric analysis via a spatial Durbin model (SDM) to examine the effects of industrial agglomeration on inventory performance. Meanwhile, the moderation model is applied to examine the moderating role of two firm-level heterogeneity factors.

At its core, this research demonstrates that industrial agglomeration is associated with the positive change of inventory performance in the adjacent regions, whereas that in the host region as well as in general does not significantly increase. Additionally, both firm size and enterprise status in the supply chain can positively moderate these effects, except for the moderating role of firm size on the positive spillovers.

In view of firm heterogeneity, managers should take special care when matching their abilities of inventory management with the agglomeration effects. Firms with a high level of inventory management are suited to stay in an industrial cluster, while others would be better in the adjacent regions to enhance inventory performance.

This paper is the first to systematically analyze the effects of industrial agglomeration on inventory performance within and across clusters, and confirm that these effects are contingent upon firm size and enterprise status in the supply chain. It adds to the existing literature by highlighting the spatial spillovers from industrial clusters and enriching the antecedents of inventory leanness.

The purpose of this paper is to examine effects of regional economic integration on the concentration of manufacturing firms in provinces of Thailand on the border with Cambodia. It aims to clarify the interactions between dispersion and agglomeration forces within a firm’s location choice in the presence of economic integration and thereby to explain the feasibility of the border SEZs.

The theory of industrial clustering and New Economic Geography provides a theoretical framework to understand the locations of economic activities when regional economies are integrated. This paper employs provincial level data to calculate industry location quotients across a 10-year period from 2007 to 2017 in central Thailand and uses firm-level data from industrial censuses in 2006 and 2011 to estimate logit models for two border provinces with Cambodia and three eastern seaboard provinces. Two base models and extended models are tested to explain the persistent agglomeration of Thai firms in each manufacturing industry.

The authors found a positive correlation between the agglomeration level in 2006 and the choice of firms toward the border provinces in 2011. The disaggregated analysis shows that depending on the initial level of concentration in each industry, there can be agglomeration or dispersion effects. The advantage of low trade costs and labor costs of unskilled migrant workers are not significant factors attracting firms to the border. Firms in industries with increasing returns are more likely to stay in the hub.

The disaggregated analysis by industry provides very important implications for SEZ policy interventions. The important role of agglomeration economies limits the extent to which such policies can be successful. It would be an enormous challenge for policy makers to initiate forces which are strong enough to induce firms to relocate away from areas with high agglomerations. Policy interventions with attractive incentives should be very selective to industries already have a certain degree of concentration in the provinces so as to reinforce the agglomeration effects.

The research extends the empirical literature on SEZs by offering a unique case study of an emerging economy with a strong market foundation rather than a transitional or developed economy. It is also different from other research on SEZs when taking into account the effects of regional integration on border SEZ formation and firms’ location choices. In addition, this study employs firm-level data rather than provincial data to bring empirical insights and fill in the knowledge gap on agglomeration economies in Thailand with the presence of regional economic integration.

The present paper aims to analyze how the performance of hotels located on the Spanish Mediterranean coast (peninsular and Balearic) and Canary coast is affected by the degree of business agglomeration in tourist districts. If agglomeration affects hotels positively, then the externalities generated in tourist districts will be relevant when locating an establishment. Otherwise, the reason why hotels group together geographically would be more related to the suitability of beaches as a tourist destination. The study also analyzes the impact that regions or autonomous communities have on hotel performance.

The hypotheses are tested by multiple linear regression in which hotel profitability acts as the dependent variable which can be explained by independent variables such as the greater or lesser agglomeration of tourist companies at the destination and the autonomous region where the hotel is located.

The results show that hotels situated at destinations with a higher degree of agglomeration are less profitable, probably due to the greater rivalry that exists among nearby competitors. However, in accordance with the theory of tourist districts, one could expect hotels located at destinations with a higher degree of agglomeration to be more profitable because of the greater externalities generated within the district. In this sense, it is possible that hotel location decisions were based more on the natural advantage model, where firms look for specialized inputs like beach or climate, than on production externalities models.

It was necessary to work with secondary information sources which contain no data about RevPar (revenue per available room) or GopPar (gross operating profit per available room), the hotel profitability measures most often used in research studies.

The paper could be useful for hotel companies, when they are deciding on a location, and for public administrations.

The present paper is original for several reasons. First, it is one of the first studies which applies the theory of industrial districts to the tourism sector, a line of research which is still in its early stages of development. Furthermore, the ISTAT methodology is applied for the first time to the identification of Spanish tourist districts. Also, various studies relate the degree of agglomeration to hotel profitability, but none so far have used the degree of company agglomeration within a tourist district, linking it to profitability.

The purpose of this paper is to offer clarity on a central concept introduced in Porter’s The Competitive Advantage of Nations, i.e. the cluster. The authors situate the concept introduced by Porter (1990) relative to two of its antecedents, the industrial district and industrial complex. Placing the cluster in a historical context permits consideration of the extent to which it, as a concept for analysis, may be differentiated from other geography-based approaches to economic phenomena. In this way, this paper examines the added value of the cluster concept derived from economic factors.

The paper provides a detailed literature review tracing the evolution of theories of location and agglomeration into which Porter’s cluster fits. The evolution of Porter’s own conceptualisation of the cluster and how this relates to theoretical clarity surrounding the concept is explored. Comparative analysis of theories of location, agglomeration and clustering is provided to identify similarities and differences across the approaches and identify the added value of the cluster concept in relation to other approaches.

Clustering represents a process associated with spatial organisational form which may offer advantages in efficiency, effectiveness and flexibility. Cluster benefits can be appreciated through the lens of Young’s (1928) identified sources of increasing returns. A key aspect in clustering is revealed in terms of its role in enabling four sources of increasing returns. The authors outline how these sources of increasing returns are related to “soft” processes of networking, interaction and individual and collective learning. Porter’s Diamond is a self-reinforcing system which can permit increasing returns and reinforce such tendencies of economic activity within agglomerations.

Added value from Porter’s cluster concept is identified in the context of both its locational anchoring and in terms of its potential for understanding the role of exploitation of increasing returns for development. This points to the importance of focusing on clustering as a process rather than on cluster within typologies of organisational form. This implies that the nature of relationships (and how they change) within and across markets, institutions and actors lies at the heart of clustering because of their roles in knowledge-generation, including innovation, knowledge sharing and upgrading.

This paper attempts to examine which theory is best at explaining the geographic concentration in Java, an island in which most of the Indonesia’s large and medium manufacturing industries have located overwhelmingly. Our previous studies on Java have found that there was a stable – albeit increasing trend – and persistent geographic concentration in Java over the period 1976‐1995. Yet some critical questions exist: Why geographic concentration in Java persisted during this period? To what extent relevant theories and empirical literature can be used as an explicit test of competing theories on agglomeration forces? In answering those questions, we compare the three major grand theories of geographic concentration: Neo‐Classical Theory (NCT), New Trade Theory (NTT) and New Economic Geography (NEG). Using the regional specialization index as a measure of geographic concentration of manufacturing industry and pooling data over the period 1991‐002, our econometric analysis integrates the perspectives of industry, region (space) and time. We further explore the nature and dynamics of agglomeration forces underpinning the industrial agglomeration in Java by testing some key variables. Our econometric results rejected the NCT hypotheses and showed that the NTT and NEG can better explain the phenomena. It’s apparent that manufacturing firms in Java seek to locate in more populous and densely populated areas in order to enjoy both localization economies and urbanization economies, as shown by the significance of scale economies and income per capita. The former is associated with the size of a particular industry, while the latter reflects the size of a market in a particular urban area. More importantly, the results suggest that there is a synergy between thickness of market and agglomeration forces. The interplay of agglomeration economies is intensified by the imperfect competition of Java’s market structure. We find that Java’s market structure may restrict competition so that firms tend to concentrate geographically. Instead of providing some important recommendations for local and central governments and practical implications for investors and manufacturing firms, this paper gives empirical evidence with respect to path dependency hypothesis. The finding supports the NEG’s belief that history matters: older firms tend to enhance regional specialization.

The emergence of purely “street‐born” fashion styles in the 1990s in the young women’s casual wear market in Tokyo has revealed the limitations of the conventional framework of quick response (QR) approaches that have long been implemented by Japanese fashion houses. They were found to be incapable of responding to the need for fresh fashion designs in the extremely volatile and fast‐moving streets of Tokyo’s casual fashion scene. This, on the other hand, has initiated a Korean‐Japanese fashion connection, in which a large number of small fashion firms in the Dongdaemun fashion industry district in Seoul play an important role in the taking‐shape of the pronto moda (fast fashion) in Tokyo style, with their organic networking of small suppliers within the agglomeration. The linkage of fashion industries between Seoul and Tokyo has also been fostering an interactive partnership in that both parties learn the uniqueness of each other’s practices. On the basis of a review of industrial agglomeration theories, highlights the relationships between the casual fashion trends in Tokyo in the 1990s and the pronto moda formula in the fashion agglomeration in the Dongdaemun district. In addition to this, an analysis of the future implication of the Korean‐Japanese fashion connection in the context of the global fashion industry is projected.

This study investigates the existence of Marshall, Jacob and Porter’s type of externalities in Mexico. We measure the impact of industrial specialization, competition and diversity on employment growth for the period 2004 to 2008.

The analysis is based on data from 41 highly dynamic industrial clusters originally obtained by applying Porter’s (1998) methodology. We use a cross-section specification estimated via instrumental variables and two-stage least square estimation (2SLS) to control for endogeneity.

On average, we find that industrial specialization exerts a negative impact on employment growth within states and within clusters, indicating that traded industries in Mexico carry very little innovation, operate in early stages of the life cycle, face high costs of employment reassignation or exhibit low adaptability. A negative impact of specialization on employment conforms with Jacobs (1969) type of externalities and confirms what other studies have found in France (Combes, 2000), Korea (Lee et al., 2005) and the USA (Delgado et al., 2014). The authors also find that competition generates more employment.

Industrial data at the sub-branch level were obtained from the Economic Census (EC) of the National Institute of Geography and Statistics (INEGI). The EC information for 2004 was still not fully compatible with the North America Industry Classification System (NAICS), with 262 of the 309 data at the fourth-digit level aligned to the USA. In addition, industrial information from the EC is recorded every four years, which prevents this study to use panel data techniques and it makes it impossible to use time series methods.

Policymakers can clearly identify competition forces having a significant impact on employment growth. This can orient policymakers to implement measures to encourage the development of some of these clusters, as well as to identify some of the sources that drive specialization, competition and diversity.

This paper contributes to the debate on the existence of Marshallian (MAR), Jacobian and Porter externalities. This is the first study using the definition of traded clusters in Mexico, which allows the authors to identify how specialization, competition and diversity forces drive the dynamics of regional employment growth.

By observing facts of the “reversal of agglomeration” of Chinese enterprises during the period of rapid Internet development and using a new economic geography model combined with the data of the real estate sector, this paper deduces the influence of the “reshaping mechanisms” of the Internet on China's economic geography based on the “gravitation mechanism” of the Internet that affects the enterprises and the “amplification mechanism” of the Internet that amplifies the dispersion force of house prices.

In the empirical aspect, the dynamic spatial panel data model is used to test the micromechanisms of the impact of the Internet on enterprises' choice of location and the instrumental variable method is used to verify the macro effects of the Internet in reshaping economic geography.

It is found that in the era of the network economy, the Internet has become a source of regional competitive advantage and is extremely attractive to enterprises. The rapidly rising house price has greatly increased the congestion cost and has become the force behind the dispersion of enterprises. China's infrastructure miracle has closed the access gap which gives full play to network externalities and promotes the movement of enterprises from areas with high house prices to areas with low house prices.

The Internet is amplifying the dispersion force of congestion costs manifested as house prices and is reshaping China's economic geography. This paper further proposes policy suggestions such as taking the Internet economy as the new momentum of China's economic development and implementing the strategy of regional coordinated development.