The unbalanced distribution of industries is a key challenge for development policy‑making. Designing industrial strategies requires identifying patterns of regional specialization and spatial advantages across regions. This study aims to recognize spatial advantages and industrial specialization patterns by analyzing the specialization and spatial concentration of industry in the provinces of the Khorasan region (Razavi, North, and South Khorasan). Methodologically, this descriptive‑analytical research calculates three indices—Location Quotient, Gini coefficient of geographical concentration, and Gini coefficient of regional specialization—for industrial activities at the four‑digit ISIC code level. Data are extracted from industrial establishment statistics of the Statistical Center of Iran for 2002–2019.
The main innovation lies in integrating industrial specialization analysis with regional planning logic at a multi‑provincial level. The study shows that spatial proximity does not necessarily lead to structural convergence; rather, the quality of specialization and depth of the value chain play a more decisive role than mere geographical concentration. Thus, the paper partially fills an international literature gap on empirical analysis of smart specialization in multi‑provincial regions of developing economies.
Findings indicate an unbalanced concentration pattern; only a limited number of activities enjoy stable comparative advantage. The three provinces follow distinct paradigms: Razavi Khorasan has reached industrial maturity with “specialized diversity”, while North and South Khorasan remain in the fragile stage of “resource‑based pre‑specialization”. Food industries and non‑metallic mineral products are common cores of comparative advantage across all three provinces. Finally, industrial policies should move towards smart specialization and value‑chain upgrading tailored to each sub‑region.