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Service Competitiveness and Urban Innovation Policies in the UK: The Implications of the 'London Paradox'

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  • Peter Wood

Abstract

Wood P. Service competitiveness and urban innovation policies in the UK: the implications of the 'London paradox', Regional Studies. The policy models currently employed in British cities to promote urban economic innovativeness and competitiveness echo national policies by being science-, manufacturing- and technology-based. Yet, the most powerful driver of both modern UK economic success and regional and urban inequality has been London-based innovation. This does not depend on local technological initiatives, but on labour-intensive, knowledge-based processes, especially within the financial and business services. This paper examines the importance of service-based innovation and competitiveness in the English urban system, dominated by London, and its implications for urban innovation policies. These currently offer little support to other UK cities either in gaining from London's experience of service-led success, or challenging its dominance over the most innovative tradable services. [image omitted] Wood P. Les politiques en faveur de la competitivite des services et de l'innovation urbaine au R-U: les implications de la 'paradoxe de Londres', Regional Studies. Les modeles employes actuellement dans les grandes villes britanniques afin de promouvoir les politiques en faveur de l'innovation economique urbaine et de la competitivite se font l'echo des politiques nationales, etant basees sur la science, l'industrie et la technologie. Cependant, la force motrice la plus puissante de la reussite economique moderne au R-U et de l'inegalite urbaine a ete l'innovation basee sur Londres. Ceci ne depend pas des actions technologiques menees sur le plan local mais des processus a intensite de main-d'oeuvre bases sur la technologie, surtout au sein des services financiers et aux entreprises. Cet article cherche a examiner l'importance dans le systeme urbain anglais de l'innovation et de la competitivite basees sur les services, dominees par Londres, et ses implications pour les politiques en faveur de l'innovation urbaine. Ces dernieres donnent actuellement peu d'appui aux autres grandes villes britanniques, soit afin de profiter de l'experience de Londres quant a la reussite induite par les services, soit defier sa domination dans le domaine des services commercialisables les plus innovateurs. Politique d'innovation urbaine Services aux entreprises Grandes villes principales Londres Wood P. Wettbwerbsfahigkeit bei Dienstleistungen und stadtische Innovationspolitiken in Grossbritannien: die Auswirkungen des 'London-Paradoxes', Regional Studies. Die von britischen Stadten derzeit eingesetzten politischen Modelle zur Forderung urbaner Wirtschaftsinnovation und Wettbwerbsfahigkeit sind ein Abbild der landesweiten Politiken, da sie auf Wissenschaft, Produktion und Technologie grunden. Der wirksamste Faktor fur den wirtschaftlichen Erfolg des modernen Grossbritanniens sowie fur die regionale und urbane Ungleichheit liegt jedoch in der von London ausgehenden Innovation. Dieser Faktor hangt nicht von lokalen technologischen Initiativen ab, sondern vielmehr von arbeitsintensiven und wissensgestutzten Prozessen, insbesondere im Bereich der Finanz- und Geschaftsdienstleistungen. In diesem Beitrag wird die Bedeutung der Innovation und Wettbwerbsfahigkeit im Bereich der Dienstleistungen des von London dominierten englischen Stadtsystems untersucht, und es werden die Auswirkungen fur urbane Innovationspolitiken erortert. Diese Politiken bieten anderen britischen Stadten momentan nur wenig Unterstutzung: Weder ermoglichen sie es ihnen, von Londons Erfahrung mit Erfolgen im Bereich der Dienstleistungen zu profitieren, noch rutteln sie an der vorherrschenden Stellung der Hauptstadt im Bereich der meisten innovativen handelbaren Dienstleistungen. Stadtische Innovationspolitik Geschaftsdienste Kernstadte London Wood P. Competitividad de los servicios y politicas de innovacion urbana en el RU: los efectos de la 'paradoja de Londres', Regional Studies. Los modelos politicos actualmente empleados en ciudades britanicas para fomentar la innovacion y la competitividad economicas urbanas son un reflejo de las politicas nacionales al basarse en la ciencia, la manufactura y la tecnologia. Sin embargo, el desencadenante mas poderoso del exito economico del Reino Unido moderno y las desigualdades regionales y urbanas ha sido la innovacion de Londres. Esto no depende de las iniciativas tecnologicas a nivel local sino de los procesos con alto nivel de conocimientos y mano de obra, especialmente en los servicios financieros y comerciales. En este articulo examino la importancia de la innovacion y la competitividad de los servicios en el sistema urbano de Inglaterra dominado por Londres y sus repercusiones para las politicas innovadoras urbanas. Estas ofrecen en la actualidad poco apoyo a otras ciudades britanicas ya sea para aprovechar de la experiencia de Londres en cuanto al exito de los servicios o al desafiar su dominio en los servicios comerciables mas innovadores. Politica de innovacion urbana Servicios comerciales Ciudades centrales Londres

Suggested Citation

  • Peter Wood, 2009. "Service Competitiveness and Urban Innovation Policies in the UK: The Implications of the 'London Paradox'," Regional Studies, Taylor & Francis Journals, vol. 43(8), pages 1047-1059.
    • Handle: RePEc:taf:regstd:v:43:y:2009:i:8:p:1047-1059
    DOI: 10.1080/00343400801968437
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    References listed on IDEAS

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    1. Freeman, Alan, 2007. "London’s Creative Sector: 2007 Update," MPRA Paper 52627, University Library of Munich, Germany, revised Apr 2007.
    2. Erik Brynjolfsson & Lorin M. Hitt, 2003. "Computing Productivity: Firm-Level Evidence," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 793-808, November.
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    1. Jörn Block & Christian Fisch & Kenta Ikeuchi & Masatoshi Kato, 2022. "Trademarks as an indicator of regional innovation: evidence from Japanese prefectures," Regional Studies, Taylor & Francis Journals, vol. 56(2), pages 190-209, February.
    2. Wouter Jacobs & Hans Koster & Peter Hall, 2011. "The Location and Global Network Structure of Maritime Advanced Producer Services," Urban Studies, Urban Studies Journal Limited, vol. 48(13), pages 2749-2769, October.
    3. Max Nathan & Neil Lee, 2013. "Cultural Diversity, Innovation, and Entrepreneurship: Firm-level Evidence from London," Economic Geography, Clark University, vol. 89(4), pages 367-394, October.
    4. Neil Lee, 2017. "Psychology and the Geography of Innovation," Economic Geography, Taylor & Francis Journals, vol. 93(2), pages 106-130, March.
    5. Neil Lee, 2013. "Cultural Diversity, Cities and Innovation: firm Effects or City Effects?," SERC Discussion Papers 0144, Centre for Economic Performance, LSE.
    6. Neil Lee & Andrés Rodríguez-Pose, 2014. "Creativity, Cities, and Innovation," Environment and Planning A, , vol. 46(5), pages 1139-1159, May.
    7. Neil Lee & Andr�s Rodr�guez-Pose, 2014. "Innovation in Creative Cities: Evidence from British Small Firms," Industry and Innovation, Taylor & Francis Journals, vol. 21(6), pages 494-512, August.
    8. Mark Thissen & Frank van Oort & Dario Diodato & Arjan Ruijs, 2013. "Regional Competitiveness and Smart Specialization in Europe," Books, Edward Elgar Publishing, number 15331.
    9. valter di Giacinto & Giacinto Micucci & Alessandro Tosoni, 2018. "Knowledge intensive business services and urban areas: an analysis of localization and productivity on Italian data," Questioni di Economia e Finanza (Occasional Papers) 443, Bank of Italy, Economic Research and International Relations Area.
    10. Valter Giacinto & Giacinto Micucci & Alessandro Tosoni, 2020. "The agglomeration of knowledge-intensive business services firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 557-590, December.
    11. Neil Lee & Andrés Rodríguez-Pose, 2013. "Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1742-1759, July.
    12. Andrew Johnston & Robert Huggins, 2017. "University-industry links and the determinants of their spatial scope: A study of the knowledge intensive business services sector," Papers in Regional Science, Wiley Blackwell, vol. 96(2), pages 247-260, June.
    13. Helen Lawton Smith & Dave Chapman & Peter Wood & Timothy Barnes & Saverio Romeo, 2014. "Entrepreneurial Academics and Regional Innovation Systems: The Case of Spin-Offs from London's Universities," Environment and Planning C, , vol. 32(2), pages 341-359, April.
    14. Konstantinos A Melachroinos & Nigel Spence, 2014. "The Impact of Intangible Assets on Regional Productivity Disparities in Great Britain," Environment and Planning A, , vol. 46(3), pages 629-648, March.
    15. Tony Champion & Alan Townsend, 2011. "The Fluctuating Record of Economic Regeneration in England's Second-Order City-Regions, 1984-2007," Urban Studies, Urban Studies Journal Limited, vol. 48(8), pages 1539-1562, June.

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