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CAMERON
SCHOOL OF BUSINESS
Location Quotients
CAMERON
SCHOOL OF BUSINESS
?We have hotels, do we have “a lot”?
? Raleigh has hotels too?
?Need context!
? ???????? ???????? =
????? ??? ?? ???
????? ????? ???
???????? ??? ?? ???
????? ???????? ???
?LQ > 1 ? More than national average
?LQ < 1 ? Less than national average
CAMERON
SCHOOL OF BUSINESS
Avg
Annual
Wage
Weekly
Hours
Construction $44,847 38.9
Manufacturing $81,946 40.8
Trade transport
and utilities
$34,036 34.3
Information $51,856 36.5
Financial
services
$59,316 37.4
Prof and Bus
Services
$50,300 36.2
Education and
Health Services
$43,353 32.9
Leisure and
Hospitality
$16,044 26
Other Services $26,060 31.8
CAMERON
SCHOOL OF BUSINESS
?Is the LQ different from 1?
? Often difficult to tell
? Imprecise at local level
?Do not consider size of firms
? One large firm doesn’t indicate a “cluster”
?Often too aggregated
? i.e. types of manufacturing
CAMERON
SCHOOL OF BUSINESS
Identifying Important Industries
(see notes from class)
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Location Quotients