The main aim of the paper is to investigate the co-localization patterns of three-digits manufacturing in Italy in 2010. Thus, exploratory spatial data analysis (ESDA) will be conducted using discrete and continuous models in order to capture more efficiently the phenomenon. The location quotient, the raw geographic concentration index, the locational Gini coefficient, the Moran?s I, the Moran?s scatterplot and LISA statistics will be used. Researchers have elaborated numerous theoretical and empirical studies (see, for instance, Brülhart & Torstensson, 1996; Ellison & Glaeser, 1997; Haaland at al., 1999; Maurel & Sédillot, 1999; Midelfart-Knarvik et al., 2002) to identify and test appropriate models and indicators in order to unfold the economic co-localization patterns. Despite the conspicuous amount of literature, there is little agreement among researchers as to which approach captures the economic aggregation more effectively (Guillain & Le Gallo, 2007). In this paper a combination of discrete and continuous-space models will be used in order to explore the agglomeration, concentration and specialization patterns within the three-digits manufacturing in Italy. The discrete-space approach is a model-based, which treats locations as space-independent assuming the discrete ?states? hypothesis (Krugman, 1991b). It takes into account the unit as identical without any consideration of the role played by nearby territories causing an underestimation of economic aggregation. Therefore, it is necessary to implement the discrete-space model with the continuous-space indices in order to increase the statistical significance of economic activities distribution. Hence, the autocorrelation between units is necessary to take into account in order to have a rilaible measurment of agglomeration. Hence, the Moran?s I, Moran?s scatterplot and LISA statistics will be used in order to investigate the phenomenon of manufacturing co-localisation in Italy. The classification of economic activities refers to ATECO 2007. The secondary quantitative information will be collected through the Italian National Statistical Office (ISTAT) with regard to the number of employees and plants of three-digits manufacture industries disaggregated by regions and provinces.
