It encourages the establishment of related industries in one area to enjoy the benefits of linkages.

It increases job opportunities in the area hence reducing unemployment.

Infrastructure development results from localisation e.g transport facilities, buildings institutions etc which promotes development in the area.

Increases government revenue because more taxes are raised as more industries are established in the area.

It ensures minimal waste of resources since bi-products of one firm may be used as raw materials by another firm.

It encourages division of labour because it is possible to split the production process so that different firms specialize in different fields of production.

Localisation facilitates the formation of entreprenual associations which are necessary for carrying on research and promoting investment.

As more firms concentrate in an area, there is competition among firms leading to production of better quality products at lower prices.

It leads to organised markets and marketing systems as some firms provide ready market for products of other firms.

Localised firms and industries do enjoy economies of concentration which include sharing better transport and communication services, access to financial institutions etc..