ABSTRACT
This chapter identifies similarities in sectoral location patterns across metropolitan areas and ascertains the relationship between metropolitan economic structure and employment and income growth. It examines temporal shifts as revealed by changes in spatial associations among sectors. Emphasis is placed on spatial associations between fast-growing services and other sectors of larger metropolitan economies. Access to information is particularly important for innovating service and high-tech goods-producing sectors. Research and development (R&D) information can spill over from one innovating firm to another as skilled professionals switch jobs within a metropolitan area. The data analyzed include employment in all two-digit Standard Industrial Classification (SIC) sectors, as well as government and corporate auxiliary and administrative (A&A) activities. The factor analysis using employment shares in 1986 did not show a spatial association between business and professional services and corporate A&A functions. Factor analysis of employment shares identified spatial industrial clusters in the larger US metropolitan areas.
