IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v44y2007i9p1739-1757.html
   My bibliography  Save this article

Explaining Spatial Patterns of Industrial Diversity: An Analysis of Sub-regions in Great Britain

Author

Listed:
  • Paul Bishop

    (Business School, University of Plymouth, Cookworthy House, Drake Circus, Plymouth, PL4 8AA, UK, paul.bishop@plymouth.ac.uk)

  • Peter Gripaios

    (Business School, University of Plymouth, Cookworthy House, Drake Circus, Plymouth, PL4 8AA, UK, peter.gripaios@plymouth.ac.uk)

Abstract

This paper argues that effective local policy development requires a thorough understanding of patterns of spatial diversity involving the integration of theoretical work from geography, economics and management. An empirical analysis of diversity in Great Britain for the period 1995-2002 is presented utilising entropy measures of diversity. The results of empirical models of the determinants of diversity across sub-regions examine the significance of a number of explanatory factors including regional size, level of urbanisation, industry structure, market structure and key resources. Decomposing the model into related and unrelated diversity components reveals some important differences between the two types of diversity. The paper concludes that policies fostering long-term diversity are a crucial complement to policies focusing on key sectors.

Suggested Citation

  • Paul Bishop & Peter Gripaios, 2007. "Explaining Spatial Patterns of Industrial Diversity: An Analysis of Sub-regions in Great Britain," Urban Studies, Urban Studies Journal Limited, vol. 44(9), pages 1739-1757, August.
    • Handle: RePEc:sae:urbstu:v:44:y:2007:i:9:p:1739-1757
    DOI: 10.1080/00420980701426632
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420980701426632
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420980701426632?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-656, September.
    2. J. H. Ll. Dewhurst & P. Mccann, 2002. "A Comparison of Measures of Industrial Specialization For Travel-to-work Areas in Great Britain, 1981-1997," Regional Studies, Taylor & Francis Journals, vol. 36(5), pages 541-551.
    3. Gilles Duranton & Diego Puga, 2000. "Diversity and Specialisation in Cities: Why, Where and When Does it Matter?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 533-555, March.
    4. Adrian Gourlay & Jonathan Seaton, 2004. "The determinants of firm diversification in UK quoted companies," Applied Economics, Taylor & Francis Journals, vol. 36(18), pages 2059-2071.
    5. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    6. Gorecki, Paul K, 1975. "An Inter-Industry Analysis of Diversification in the U.K. Manufacturing Sector," Journal of Industrial Economics, Wiley Blackwell, vol. 24(2), pages 131-146, December.
    7. Abdel-Rahman, Hesham M., 1990. "Agglomeration economies, types, and sizes of cities," Journal of Urban Economics, Elsevier, vol. 27(1), pages 25-45, January.
    8. Michael Gort, 1962. "Diversification and Integration in American Industry," NBER Books, National Bureau of Economic Research, Inc, number gort62-1.
    9. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    10. Beckstead, Desmond Brown, W. Mark, 2003. "From Labrador City to Toronto: The Industrial Diversity of Canadian Cities, 1992 to 2002," Insights on the Canadian Economy 2003003e, Statistics Canada, Economic Analysis Division.
    11. Lemelin, Andre, 1982. "Relatedness in the Patterns of Interindustry Diversification," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 646-657, November.
    12. H. Kurt Christensen & Cynthia A. Montgomery, 1981. "Corporate economic performance: Diversification strategy versus market structure," Strategic Management Journal, Wiley Blackwell, vol. 2(4), pages 327-343, October.
    13. Utton, M A, 1977. "Large Firm Diversification in British Manufacturing Industry," Economic Journal, Royal Economic Society, vol. 87(345), pages 96-113, March.
    14. Peter Midmore & Max Munday & Annette Roberts, 2006. "Assessing industry linkages using regional input-output tables," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 329-343.
    15. 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.
    16. Wagner, John E., 2000. "Regional Economic Diversity: Action, Concept, or State of Confusion," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 30(2), pages 1-22.
    17. Michael Gort, 1962. "Introduction to "Diversification and Integration in American Industry"," NBER Chapters, in: Diversification and Integration in American Industry, pages 3-7, National Bureau of Economic Research, Inc.
    18. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-1433, September.
    19. Geroski, P A, 1990. "Innovation, Technological Opportunity, and Market Structure," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 586-602, July.
    20. Paul Bishop & Nick Wiseman, 1999. "External ownership and innovation in the United Kingdom," Applied Economics, Taylor & Francis Journals, vol. 31(4), pages 443-450.
    21. Montgomery, Cynthia A. & Hariharan, S., 1991. "Diversified expansion by large established firms," Journal of Economic Behavior & Organization, Elsevier, vol. 15(1), pages 71-89, January.
    22. Bruche, Gert, 2000. "Corporate strategy, relatedness and diversification," Working Papers 13, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
    23. Peter Gripaios & Max Munday, 2000. "Uneven Development in UK Financial Services: The Case of the South West and Wales," The Service Industries Journal, Taylor & Francis Journals, vol. 20(1), pages 153-180, January.
    24. Abdel-Rahman Hesham M. & Fujita Masahisa, 1993. "Specialization and Diversification in a System of Cities," Journal of Urban Economics, Elsevier, vol. 33(2), pages 189-222, March.
    25. Moshe Farjoun, 1994. "Beyond Industry Boundaries: Human Expertise, Diversification and Resource-Related Industry Groups," Organization Science, INFORMS, vol. 5(2), pages 185-199, May.
    26. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    27. Koen Frenken & Frank G. van Oort & Thijs Verburg & Ron A. Boschma, 2004. "Variety and regional economic growth in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0502, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2004.
    28. Ian R. Gordon & Philip McCann, 2000. "Industrial Clusters: Complexes, Agglomeration and/or Social Networks?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 513-532, March.
    29. Dan O'Donoghue & Ivan Townshend, 2005. "Diversification, specialization, convergence and divergence of sectoral employment structures in the British urban system, 1991-2001," Regional Studies, Taylor & Francis Journals, vol. 39(5), pages 585-601.
    30. Huriot,Jean-Marie & Thisse,Jacques-François (ed.), 2000. "Economics of Cities," Cambridge Books, Cambridge University Press, number 9780521641906, October.
    31. Denis, David J & Denis, Diane K & Sarin, Atulya, 1997. "Agency Problems, Equity Ownership, and Corporate Diversification," Journal of Finance, American Finance Association, vol. 52(1), pages 135-160, March.
    32. Pier P. Saviotti, 1996. "Technological Evolution, Variety and the Economy," Books, Edward Elgar Publishing, number 727.
    33. Monastiriotis, Vassilis, 2000. "City Size And Production Diversity: Patterns Of Specialisation And Diversity In The Us Cities, 1969-1997," ERSA conference papers ersa00p230, European Regional Science Association.
    34. Yakov Amihud & Baruch Lev, 1999. "Does corporate ownership structure affect its strategy towards diversification?," Strategic Management Journal, Wiley Blackwell, vol. 20(11), pages 1063-1069, November.
    35. Andy Cumbers & Danny MacKinnon, 2004. "Introduction: Clusters in Urban and Regional Development," Urban Studies, Urban Studies Journal Limited, vol. 41(5-6), pages 959-969, May.
    36. Cynthia A. Montgomery, 1994. "Corporate Diversificaton," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 163-178, Summer.
    37. Brian S. Silverman, 1999. "Technological Resources and the Direction of Corporate Diversification: Toward an Integration of the Resource-Based View and Transaction Cost Economics," Management Science, INFORMS, vol. 45(8), pages 1109-1124, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alexandra Tsvetkova, 2015. "Innovation, Entrepreneurship, and Metropolitan Economic Performance," Economic Development Quarterly, , vol. 29(4), pages 299-316, November.
    2. Salazar, Xavier & Atienza, Miguel, 2010. "Las empresas en Santa Cruz, ¿continúan en una estructura monocéntrica?," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 13, pages 59-90.
    3. Tsvetkova, Alexandra, 2016. "Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry," MPRA Paper 72349, University Library of Munich, Germany.
    4. Belmartino, Andrea, 2016. "Diversidad industrial en las provincias argentinas y factores económicos asociados (1996-2012)," Nülan. Deposited Documents 2604, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Koen Frenken & Frank Van Oort & Thijs Verburg & Ron Boschma, 2004. "Variety, Employment and Regional Development in The Netherlands," ERSA conference papers ersa04p386, European Regional Science Association.
    2. Guerras-Martín, Luis Ángel & Ronda-Pupo, Guillermo Armando & Zúñiga-Vicente, José Ángel & Benito-Osorio, Diana, 2020. "Half a century of research on corporate diversification: A new comprehensive framework," Journal of Business Research, Elsevier, vol. 114(C), pages 124-141.
    3. Theodore Tsekeris & Klimis Vogiatzoglou, 2014. "Public infrastructure investments and regional specialization: empirical evidence from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 265-289, August.
    4. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342, April.
    6. Manral, Lalit & Harrigan, Kathryn R., 2018. "The logic of demand-side diversification: Evidence from the US telecommunications sector, 1990–1996," Journal of Business Research, Elsevier, vol. 85(C), pages 127-141.
    7. Fujita, Masahisa & Thisse, Jacques-François, 2001. "Agglomération et marché," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 58.
    8. Céline Boiteux-Orain & Jean-Marie Huriot, 2001. "Modelling suburbanization (success and limits of microeconomics of cities) [Modéliser la suburbanisation (succès et limites de la microéconomie urbaine)]," Working Papers hal-01527136, HAL.
    9. Ho Yeon KIM & Petra de Jong & Jan Rouwendal & Aleid Brouwer, 2012. "Shrinking population and the urban hierarchy [Housing preferences and attribute importance among Dutch older adults: a conjoint choice experiment]," ERSA conference papers ersa12p350, European Regional Science Association.
    10. Behrens, Kristian & Robert-Nicoud, Frédéric, 2015. "Agglomeration Theory with Heterogeneous Agents," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 171-245, Elsevier.
    11. BOITEUX-ORAIN, Céline & HURIOT, Jean-Marie, 2001. "Modéliser la suburbanisation . Succès et limites de la microéconomie urbaine," LATEC - Document de travail - Economie (1991-2003) 2001-02, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
    12. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    13. Gilles Duranton & Diego Puga, 2000. "Diversity and Specialisation in Cities: Why, Where and When Does it Matter?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 533-555, March.
    14. Rotondo, Sebastián & Calá, Carla Daniela & Llorente, Leandro, 2016. "Evolución de la diversidad productiva en Argentina: análisis comparativo a nivel de áreas económicas locales entre 1996 y 2015," Nülan. Deposited Documents 2599, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    15. Monastiriotis, Vassilis, 2000. "City Size And Production Diversity: Patterns Of Specialisation And Diversity In The Us Cities, 1969-1997," ERSA conference papers ersa00p230, European Regional Science Association.
    16. Belmartino, Andrea, 2016. "Diversidad industrial en las provincias argentinas y factores económicos asociados (1996-2012)," Nülan. Deposited Documents 2604, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    17. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    18. Belmartino, Andrea & Calá, Carla Daniela, 2020. "A regional approach to the study of industrial diversity in Argentina (1996–2012)," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    19. Koen Frenken & Frank G. van Oort & Thijs Verburg & Ron A. Boschma, 2004. "Variety and regional economic growth in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0502, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2004.
    20. Grossmann, Volker, 2007. "Firm size and diversification: Multiproduct firms in asymmetric oligopoly," International Journal of Industrial Organization, Elsevier, vol. 25(1), pages 51-67, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:44:y:2007:i:9:p:1739-1757. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.