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Close Encounters: Evidence of the potential benefits of proximity to local industrial clusters

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Author Info
Thelma Quince
Hugh Whittaker
Abstract

Local clusters of high technology small businesses are of increasing interest to politician and academics. This papers draws on a study of 237 high tech small businesses located throughout the UK. Combining information on activity and location, firms were grouped according to their potential degree of embeddedness in local industrial clusters. Businesses with differing levels of cluster involvement were then examined in terms of market structure, supportiveness of local cluster and their performance. The findings lend support to the role of untraded rather than traded interdependencies in the dynamics of localised high tech clusters. Research indicating compensating behaviour by high tech businesses disadvantaged by location is also supported, emphasising the need to consider not only the location and activity but also entrepreneurial objectives.

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File URL: http://www.cbr.cam.ac.uk/pdf/WP235.pdf
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Publisher Info
Paper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp235.

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Date of creation: Jun 2002
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Handle: RePEc:cbr:cbrwps:wp235

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Web page: http://www.cbr.cam.ac.uk/

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Related research
Keywords: high technology small firms; business clusters; rural locations; untraded interdependencies;

Find related papers by JEL classification:
L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R19 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Other

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Hugh Whittaker, 1999. "Entrepreneurs as Co-Operative Capitalists: High Tech CEOs in the UK," ESRC Centre for Business Research - Working Papers wp125, ESRC Centre for Business Research. [Downloadable!]
  2. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Alfred Thwaites & Pooran Wynarczyk, 1996. "The Economic Performance of Innovative Small Firms in the South East Region and Elsewhere in the UK," Regional Studies, Taylor and Francis Journals, vol. 30(2), pages 135-149, April. [Downloadable!] (restricted)
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