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Focusing on the characteristics of destinations, this paper pursues to identifythe role of spatial spillovers in driving location choices of manufacturing and services´firms. With this objective a spatial conditional logit framework is defined, allowing forneighbourhood-related spatial effects. Additionally, a broad indicator of spatialspillovers generated by a given destination is proposed. The model is then applied toempirically capture the behaviour of 1.092.864 new firms established in 316municipalities of the Spanish Mediterranean Arc (SMA) between 1998 and 2008.Estimation results show that such spatial effects have a remarkable impact on thelocation decisions of industrial companies relative to those of services. When thesample is splitted out by technological intensity of activities, it can be observed thatspatial spillovers are more willing to affect decisions of high-tech companies relative tothose of low-tech ones, particularly for industrial activities

The Role of Destination Spatial Spillovers and Technological Intensity in the Location of Manufacturing and Services Firms