Vertical disintegration and spatial co-localization: the case of KIBS in the metropolitan region of Milan

In this paper we explore the relation between vertical disintegration and the co-localization of knowledge intensive business service (KIBS) firms in the metropolitan region of Milan, using micro-geographic data and nonparametric methods. Our main results are that: (i) compared to other manufacturing and service industries, KIBS firms show a ‘natural tendency’ to cluster; (ii) this tendency increases with the degree of vertical disintegration of KIBS firms