In this paper we compare the magnitude of local productivity advantages associated to two different spatial concentration patterns in Italy, i.e. urban areas (UA) and industrial districts (ID). UA typically display a huge concentration of population and host a wide range of economic activities,...

We compare the magnitude of local productivity advantages associated with two different spatial concentration patterns in Italy – urban areas and industrial districts. The former have high population density and host a wide range of economic activities, while the latter are marked by a high...

Using data from a large sample of Italian manufacturing firms we provide novel empirical evidence on the magnitude of local productivity advantages in two types of spatially concentrated regions: urban areas (UAs) and industrial districts (IDs). A larger surplus is estimated for cities compared...