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Determination of region industry specialization

The methods to determine economic specialization of regions applied within the framework of Regional Map for Entrepreneurship Development are the following:

1.       Input – output model (Leontiev’s inter-industry balance model). The gross regional product distribution as well as commodities flows between regions were considered in the performed analysis.

2.       Location quotients and specialization ratio. The location quotients (based on value added) and specialization ratio (based on the production per capita and employment) were used in the study. Additionally, the structural changes of industries in regional economies were computed to assess the time-varying economic specialization of regions.

3.       Factor analysis. Resource allocation plays a huge role and therefore economic specialization has been analyzed with a matter to raw material, human capital, natural and climatic conditions, infrastructure as well markets available to regions.

4.       Cluster approach. The key idea in the analysis is to identify developed, developing and potential clusters.


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