LOCATION QUOTIENTS
• Location quotients can be interpreted as a local measure of geographical concentration of industries. They are calculated as the quotient between the local share of employee jobs in a specific industry and the local share of national employee jobs. A value greater than 1 means that a region has a higher share of employee jobs in an industry than its share of national employee jobs.
• Location quotients can also be interpreted as a local measure of industrial specialisation for local areas. They compare for each industry, the industry's share of local area employee jobs with its share of total employee jobs. A value of 1 means that an industry's share of employee jobs in a region is the same as its share of national employee jobs in Great Britain. A value greater than 1 means that industry makes up a larger share of employee jobs in the local area than at the national level.
• Below are the LQs for companies engaged in the ‘manufacture of other transport equipment’. The data in the table reveal that from all of the clusters and other concentrations of companies within this sector, Lancashire has the greatest concentration and specialism.
North West South West
Location Quotients for the manufacture of other transport equipment Lancashire
Devon
East Midlands South West Wales
South West South East
East of England Scotland Wales
Derbyshire and Nottinghamshire Dorset and Somerset East Wales
4.8
4.57 3.63 3.28 3.25
Gloucestershire, Wiltshire and Bath/Bristol area 2.63 Hampshire and Isle of Wight Bedfordshire and Hertfordshire South Western Scotland West Wales and The Valleys
1.93 1.27 1.12 1.01
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