Patterns of spatial clustering of Spanish. Start-ups and the formation of entrepreneurship in the manufacturing sector

Abstract

Entrepreneurship is spatially unequally distributed in Spain and manufacturing entry rates have not been high in the last three years. Using data from the Spanish National Institute of Statistics (INE) and SABI databases, this study explores the factors that influence manufacturing entrepreneurship clusters in the Spanish provinces by highlighting the importance of industrial localization and urbanization factors. At the industry level, our results support the existence of a significant Marshallian effect in the manufacturing sector, as more manufacturing entrepreneurship is likely to occur where there is a concentration of upstream firms and a strong labor market. In the case of urbanized economies, population size is positively related to manufacturing entrepreneurship, while population density is negatively related to it. Based on Marshallian theory, our paper's analysis of the spatial clustering of start-ups in the Spanish manufacturing sector can be useful to local and national policy makers planning to encourage entrepreneurship.