Are there Marshallian industrial districts in Portugal? revisiting the canello and pavone algorithm

The present study maps and classifies industrial districts in Portugal, identifying the features of specialization and the current capacity of industrialization. It employs an adaptation of the algorithm developed by Canello and Pavone (2016) in 308 Portuguese municipalities based on six phases. In terms of methodological innovation, a new concentration ratio was introduced, making it possible to identify homogeneity in the industrial structure and to consider different sizes of companies, regarding the classification of Industrial Districts. It provides guidelines for policymakers in order to promote cross-fertilized industrial districts, considering the specificities of low-density industrial regions.