Recently the phenomenon of firms localization has been reconsidered by the economic debate. Emphasis is given to increasing returns of localization as internal scale economies and/or as agglomeration economies. The aim of the work is that of analyzing and describing the phenomenon of localization of manufacturing industries in Italy in the last twenty years by some indicators and a panel estimate of the localization coefficients relative to 22 manufacturing industries. This in order to discriminate between the two explanations (i.e. scale economies and agglomeration economies) the one that best responds to the Italian data. The results are the following: first of all a constant, even little, reduction of concentration of manufacturing activ...