Vertical disintegration and spatial co-localization: The case of Kibs in the metropolitan region of Milan

This paper explores the relation between vertical disintegration and the co-localization of knowledge intensive business service (Kibs) firms in the metropolitan region of Milan, using micro-geographic data and nonparametric methods. Our main results are that: (i) compared to other manufacturing and service industries, Kibs firms show a “natural tendency” to cluster; (ii) this tendency increases with the degree of vertical disintegration of Kibs firms.

► We explore the relation between vertical disintegration and KIBS spatial co-localization. ► We use microgeographic data and nonparametric techniques. ►Kibs firms show a strong tendency to cluster. ► The higher is Kibs vertical disintegration the stronger is their tendency to cluster.