Spatial clustering of knowledge-based industries in the Helsinki metropolitan area

Abstract

The central locations of metropolitan areas have some specific attributes, leading to an accumulation of large knowledge exchanges and extensive knowledge externalities, which encourage the concentration of various economic activities, especially knowledge-based industries (KBI). Other agglomeration economies found in metropolitan areas-such as telecommunications and transport infrastructures connected to global productive circuits and complementary labour markets-are key factors for KBI employment growth. This paper explores the Helsinki Metropolitan Area’s (HMA) spatial clustering of KBI at the sub-district level, and the role played by agglomeration economies (both specialization and diversity economies) in fostering this process. The results reveal that KBI employment shows patterns of concentration in the core and adjacent areas. The specialization and diversity economies found in the metropolitan core and the specialization economies found in others areas lead to KBI spatial clustering in the HMA. Public policies regarding the promotion of science parks have also played a decisive role.