Calculates the Location Quotient LQ = (e_ij/e_i)/(e_j/e) to identify regional industrial specialisation relative to the national average. LQ > 1.25 indicates a regionally specialised industry — the US software sector has LQ > 5 in Seattle and San Francisco compared to the national average.
Inputs
E Ir
Reference formula or conversion factor shown for context.
E R
Reference formula or conversion factor shown for context.
E In
Reference formula or conversion factor shown for context.
E N
Reference formula or conversion factor shown for context.
Results
location quotient LQ
The value at the specified point or condition.
regional sector share
Sample size or count used in the calculation.
national sector share
The value at the specified point or condition.
export surplus jobs (if LQ>1)
Reference formula or conversion factor shown for context.
LQ = (e_ir/E_r) / (e_in/E_n)
Sample size or count used in the calculation.
interpretation
Qualitative summary of what the computed numbers mean in practical terms.