The article examines how agglomeration economies influence where new businesses set up shop within cities. It looks at how factors like industry concentration and city size affect firms of different technological levels. The study uses data on new industrial firms in Spain to analyze location patterns. By considering the size of the central city, the researchers investigate if there is a trend of firms moving away from the city center. The results show that different industries have distinct location preferences within metropolitan areas, and the central city size plays a role in where new firms choose to locate.