Territorial Disparities in Tuscan Industrial Assets: A Method to Assess Average Firm-Size Spatial Distribution

Abstract

In economics, firm-size can is an important marker for economic activities’ dynamism. It indicates the scale of operation and conditions regarding production and profitability, hence, the overall economic soundness of a sector or industry. Several variables can be employed for assessing firm-size, categorized in input factors – capital, labour, net-worth and total assets; output factors – volume of production, value added; and factors related to space, such as market size and presence of transportation. From a spatial perspective, addressing firm-size remains a challenge, as in-detail surveys of these variables are difficult due to the limited breakdown of economic data. However, regional characteristics of firm-size distribution can reveal several logics about territorial disparities, that ought to be considered in policies for economic recovery. This paper objective is to propose a method to estimate average firm-size throughout the Tuscany region territory, based on the variables of number of local units (firms) and number of employees, and evaluate its spatial distribution evolution between two periods of time Industrial Census data will be compared to industrial assets locational data to individuate production-oriented – spaces dedicated to manufacture – and administrative-oriented areas in the Tuscany Region. Organized in a GIS-based environment, the results assessment provides an in-detail view of spatial information regarding territorial disparities in industrial distribution, which can be compared to other territorial endowments that exist within the region, thus, being a complementary analysis for urban and regional planning.