טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentKaty Shulman
SubjectLocation Patterns of Israeli Pharmaceutical and Electronic
Firms
DepartmentDepartment of Industrial Engineering and Management
Supervisor Dr. Baron Mira
Full Thesis textFull thesis text - English Version


Abstract

Over the last decade there has been a general growth of interest in the issues concerning geography and the location patterns of industries. In view of the fact that pharmaceutical and electronic industries are among the most significant and prominent branches of Israeli economy, understanding their location pattern is essential.

This work tries to describe and analyze the location patterns of pharmaceutical firms in Israel and to compare them to the location patterns of local electronic industry applying spatial econometric techniques. Several agglomeration factors were identified based on previous research and field works. To examine their influence a number of autoregressive models were estimated to county-level observations level and Spatial Autoregressive Durbin Tobit model (SDM Tobit) was chosen as a best fitting model based on Log-likelihood criteria.

The main results of this study show that pharmaceutical firms would find it beneficial to collocate with firms that engage in the same type of activity.  Electronic firms, on the other hand, would not see in location with other electronic firms valuable advantage. University variable appeared to be insignificant in both branches, which was consistent with previous research of Israeli industry. The population factor was also insignificant in pharmaceutical and electronic industries, however taking into account the relatively small size of the country; the dependence on population centers is rather restricted. Additional factor that was estimated for pharmaceutical industry is hospitals and it was found to be positively correlated.