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Visualising the Operating Behaviour of SMEs in Sector and Cluster: Evidence from the West Midlands

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  • Janet Tully

    (International Centre for Regional Regeneration and Development Studies, University of Durham, UK)

  • Nigel Berkeley

    (Centre for Local Economic Development, Coventry Business School, Coventry University, UK)

Abstract

Cluster policy in the UK, pursued by the Regional Development Agencies (RDAs), has readily adopted a simplistic definition based upon industrial sectors and location quotients. Evidence drawn from a study of the operating behaviour of SMEs belonging to two traditional manufacturing industries within the West Midlands—automotive components and clothing—provides a critique of this approach. Whilst the automotive components industry has been designated part of a key, high priority cluster, the clothing industry has not. Using case studies from both industries, this paper shows firms both within and outside RDA cluster definitions display a remarkably similar range of behavioural characteristics. Yet, based on weakly defined cluster policy, one industry enjoys considerably more policy support than the other. The paper begins to question the logic of RDA cluster policy and to ask whether a more sophisticated and locally sympathetic manner of visualising clusters and business behaviour rather than an emphasis on employment numbers would have a greater impact for policy.

Suggested Citation

  • Janet Tully & Nigel Berkeley, 2004. "Visualising the Operating Behaviour of SMEs in Sector and Cluster: Evidence from the West Midlands," Local Economy, London South Bank University, vol. 19(1), pages 38-54, February.
    • Handle: RePEc:sae:loceco:v:19:y:2004:i:1:p:38-54
    DOI: 10.1080/0269094032000168433
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    References listed on IDEAS

    as
    1. Tully, Janet & Townsend, Alan, 2002. "Visualising the operating behaviour of SMEs in sector & cluster: evidence from the west midlands," ERSA conference papers ersa02p239, European Regional Science Association.
    2. Darren Webb & Clive Collis, 2000. "Regional Development Agencies and the 'New Regionalism' in England," Regional Studies, Taylor & Francis Journals, vol. 34(9), pages 857-864.
    3. Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
    4. Edward Feser & Edward Bergman, 2000. "National Industry Cluster Templates: A Framework for Applied Regional Cluster Analysis," Regional Studies, Taylor & Francis Journals, vol. 34(1), pages 1-19.
    5. Allan G. B. Fisher, 1939. "Production, Primary, Secondary And Tertiary," The Economic Record, The Economic Society of Australia, vol. 15(1), pages 24-38, June.
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    7. François Perroux, 1950. "Economic Space: Theory and Applications," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(1), pages 89-104.
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    Cited by:

    1. Alex Burfitt & Stewart Macneill, 2008. "The Challenges of Pursuing Cluster Policy in the Congested State," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 32(2), pages 492-505, June.
    2. David Bailey & Stewart MacNeill, 2008. "The Rover Task Force: A case study in proactive and reactive policy intervention?," Regional Science Policy & Practice, Wiley Blackwell, vol. 1(1), pages 109-124, November.

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