This paper presents a method to identify 'Absolute and Relative Employment Concentration (AREC) areas' for a particular industry. Two novel characteristics of the method are that it simultaneously analyzes absolute and relative employment concentration, and that it combines spatial concentration per area with the spatial concentration in neighboring areas. The method is easy to understand and apply. It is developed to assist regional policy makers and corporate decision makers with their investment decisions related to new infrastructure or plants. The identifcation of concentration areas also allows for analyzing the performance of these areas in relation to characteristics such as infrastructure availability and the housing and labor market. This can yield new academic insights that are relevant for regional planners. An application of the newly developed method to five industries in a Dutch province subdivided into 502 areas illustrates the value of the method in comparison to other methods.
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