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Annex 2 CHAPTER 3: PROMOTING LOCAL DEVELOPMENT BY CREATING CULTURAL PRODUCTS Identification and statistical measurement of cultural and creative districts Annex 2.1 Concentration It is useful to look next at indicators of concentration, taking the ratio of the percentage of employment in the given sector to the average percentage of this kind of employment in the economy. If: • S is the sector of activity, • Z is the territory of reference, • N(S,Z) is the number of jobs or establishments in activity S in territory Z, and • N(S) is the total number of jobs or establishments in the activity, then an initial concentration index is given by: N(S,Z)/N(S) This index is not very satisfactory because it does not take into account the unequal distribution of jobs and establishments. We must then standardise this first index in order to compare territories, and for that we need data on a territory’s relative share in the economy. If: • T represents the total number of jobs or establishments in the economy, • T(Z) represents the total number of jobs or establishments in the territory Z, then the concentration index is: [N(S,Z)/N(S)] / [T(Z)/T] There will be concentration when this index is greater than unity. For a given sector of activity, that means that the importance of this territory is greater than its weight in the French economy. CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005 183
ANNEX 2 This indicator may also be written as follows: [N(S,Z)/N(S) ] . [T/T(Z)] or, after transformation: [N(S,Z)/T(Z)] . [N(S)/T] where N(S,Z)/T(Z) is the share of sector S in employment in territory Z and N(S)/T is the share of that same sector in the national economy. The concentration indicator measures, for a given sector, the degree of a territory’s specialisation compared to the nationwide degree of specialisation. It allows territories to be compared among themselves, and it can be used as a first approximation to the existence of districts. The higher this ratio is above 1 the stronger is the presumption of a cluster. We may also use other indices for identifying the concentration for each branch of activity and for each territory. Taking k as the index for the sector and i as the index for the geographical unit, the Herfindhal index is defined by: m m i 2 H k = ∑( sk ) = ∑ i= 1 i= 1 n i n ( n i k k ) 2 where k is employment in sector k in unit i and k is total employment in sector k. The Herfindhal index falls between 1/m and 1. As is tends toward 1, concentration is maximised, and as it tends towards 1/m, geographic dispersion is maximised. Because this index does not account for the structure of employment by sector or by geographic unit, and seems to measure specialisation rather than concentration, we use another index, the GINI, to control employment in sector k by employment in all sectors in the zone. There are two possible measures of the GINI index. The first, or Gini G i, is given by: n G k s x = 0,5 − ∑ ∑ ∑ m i i m i k i j − x sk i= 1 2 i= 2 j= 2 1 x i i n = N with which represents the share of total employment in region i. The index falls between 0 and 0.5. If it is 0.5, concentration is maximised, and if it is 0, dispersion is maximised. 184 CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005
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Culture and Local Development
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ORGANISATION FOR ECONOMIC CO-OPERAT
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Table of Contents Executive Summary
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EXECUTIVE SUMMARY the operation of
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EXECUTIVE SUMMARY new projects; and
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EXECUTIVE SUMMARY is the fact that
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EXECUTIVE SUMMARY A new agenda for
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INTRODUCTION Yet these attitudes gr
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INTRODUCTION a basis for developmen
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INTRODUCTION Defining cultural reso
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INTRODUCTION - the one where cultur
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ISBN 92-64-00990-6 CULTURE AND LOCA
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1. USING A TERRITORY’S CULTURE TO
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Chapter 2 Local development based o
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2. LOCAL DEVELOPMENT BASED ON ATTRA
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