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The Competitiveness of Business Services and Regional Development: Evidence from Scotland and the South East of England

Author

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  • P.N. O'Farrell

    (Department of Economics, Heriot-Watt University, Riccarton, Edinburgh EH14 4AS, UK)

  • D.M. Hitchens

    (Department of Economics, Queen's University Belfast, Belfast BT7 INN, UK)

  • L.A.R. Moffat

    (Department of Business Organisation, Heriot-Watt University, Riccarton, Edinburgh EH14 4AS, UK)

Abstract

This paper presents a matched-pairs analysis of the competitive performance of business service companies in Scotland and the South East of England. Value added per person is one-quarter higher in the English firms and a significantly higher proportion of them (49 per cent) have introduced a new service during the previous five years compared with 34 per cent of Scottish businesses. The latter were also more likely to function as multi-service companies reflecting the greater demand in Scotland for a more generalised service offering. The English service businesses also achieved a much greater degree of export orientation. The paper reviews various supply- and demand-side causes of the performance differences and the implications of potential policy responses are considered.

Suggested Citation

  • P.N. O'Farrell & D.M. Hitchens & L.A.R. Moffat, 1993. "The Competitiveness of Business Services and Regional Development: Evidence from Scotland and the South East of England," Urban Studies, Urban Studies Journal Limited, vol. 30(10), pages 1629-1652, December.
    • Handle: RePEc:sae:urbstu:v:30:y:1993:i:10:p:1629-1652
    DOI: 10.1080/00420989320081631
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    Cited by:

    1. Peter Gripaios & Paul Bishop, 2005. "Spatial inequalities in UK GDP per head: The role of private and public services," The Service Industries Journal, Taylor & Francis Journals, vol. 25(8), pages 945-958, December.
    2. Suma Athreye & David Keeble, 2002. "Sources of Increasing Returns and Regional Innovation in the UK," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 345-357.
    3. Spielkamp, Alfred & Berteit, Herbert & Czarnitzki, Dirk & Ransch, Siegfried & Schüssler, Reinhard, 2000. "Forschung, Entwicklung und Innovation in produktionsnahen Dienstleistungsbereichen: Impulse für die ostdeutsche Industrie und Perspektiven," ZEW Dokumentationen 00-01, ZEW - Leibniz Centre for European Economic Research.

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