Spatial economic diagnostics begin with the construction of an economic geography baseline: how is productive activity distributed across the territory, what clustering and specialisation patterns exist, and how have these patterns shifted over the analytical period? Location quotient analysis and shift-share decomposition — distinguishing national growth effects from regional competitive advantage — provide the foundation for identifying where economic concentration is structurally grounded versus where it reflects historical policy distortion or infrastructure accident.
GIS-based analysis layers accessibility, labour market catchment, land-use compatibility, and infrastructure service area data onto the economic baseline. Spatial autocorrelation techniques — Moran's I, LISA cluster mapping — identify genuine agglomeration economies and flag areas of spatial dependence that standard aspatial models would miss. Where establishment-level or firm-level microdata are available, spatial econometric regression models quantify the productivity premium associated with proximity, density, and connectivity — providing the empirical basis for location-specific investment recommendations.
Outputs are calibrated to the decision at hand. For a national spatial strategy, the diagnostic produces a territorial typology that stratifies regions by growth potential and policy priority. For an industrial location decision, it produces a scored site comparison matrix with explicit spatial criteria weights. For a transport or infrastructure investment, it maps the economic catchment and estimates the productive capacity unlocked by improved connectivity.