Identifying industrial clusters through growth co-movement with unsupervised learning methods


Abstract

This paper proposes a methodological framework for identifying economic clusters using unsupervised learning techniques applied to industry growth co-movements. Unlike conventional cluster identification approaches—based on product similarity, input–output linkages, or expert-defined industrial taxonomies—this method infers industry relatedness directly from observed dynamic behaviour. Using firm counts from the Registre des entreprises du Québec (REQ) between 1996 and 2024, we compute a correlation-based similarity matrix of annual industry growth rates and apply three clustering algorithms: hierarchical Ward clustering, K-means, and K-medoids. We evaluate each configuration using a validation metric, selecting the cluster definitions that maximize within-cluster coherence relative to between-cluster similarity. Our findings demonstrate that growth-based clustering reveals relationships that differ substantially from official industry classifications, identifying cross-sector linkages and dynamic co-vulnerabilities that static taxonomies do not capture. The paper concludes by discussing potential applications—including monitoring industrial resilience, detecting emerging clusters, and complementing traditional regional analysis—and outlines avenues for future methodological development.


Research insights

Read the article, or read an early overview of the de la méthodologie de recherche et les faits saillants de la recherche.


To cite

Chaffa, L., Warin, T. Identifying industrial clusters through growth co-movement with unsupervised learning methods. GeoJournal 91, 16 (2026). https://doi.org/10.1007/s10708-025-11564-6


EN