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A Comparison of Clustering Dynamics in the British Broadcasting and Financial Services Industries

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  • Naresh Pandit
  • Gary Cook
  • G. M. P. Swann

Abstract

This paper compares patterns of industrial clustering in the British broadcasting and financial services industries. Recent trends of deregulation, rapid technological change, and globalization in both industries suggest the significant and increasing importance of clustering effects. This study examines the evidence. It investigates the effects of cluster strength on the growth of the firm and on rates of surviving entry. We find positive, large, and statistically significant clustering effects. In both industries: (a) incumbent firms located in a cluster that is strong in their own sub-sector of their industry tend to grow faster than average; and, (b) new firms are attracted by industry strength in certain sub-sectors in a particular region. The results for these largely mature service industries are very similar to those observed in earlier studies that have examined clustering patterns in newer high technology manufacturing industries.

Suggested Citation

  • Naresh Pandit & Gary Cook & G. M. P. Swann, 2002. "A Comparison of Clustering Dynamics in the British Broadcasting and Financial Services Industries," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(2), pages 195-224.
    • Handle: RePEc:taf:ijecbs:v:9:y:2002:i:2:p:195-224
    DOI: 10.1080/13571510210134655
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    Cited by:

    1. Stoneman, Paul, 2011. "Soft Innovation: Economics, Product Aesthetics, and the Creative Industries," OUP Catalogue, Oxford University Press, number 9780199697021.
    2. Huimin Peng & Yi Qiu, 2023. "Impact of Financial Agglomeration on Regional Economic Growth in China: A Spatial Correlation Perspective," SAGE Open, , vol. 13(3), pages 21582440231, September.
    3. Gary A. S. Cook & Naresh R. Pandit & Jonathan V. Beaverstock & Peter J. Taylor & Kathy Pain, 2004. "The Clustering of Financial Services in London," ERSA conference papers ersa04p49, European Regional Science Association.
    4. Karlsson, Charlie & Rouchy, Philippe, 2013. "Media clusters and metropolitan knowledge economy," Working Paper Series in Economics and Institutions of Innovation 328, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    5. Gary A S Cook & Naresh R Pandit & Jonathan V Beaverstock & Peter J Taylor & Kathy Pain, 2007. "The Role of Location in Knowledge Creation and Diffusion: Evidence of Centripetal and Centrifugal Forces in the City of London Financial Services Agglomeration," Environment and Planning A, , vol. 39(6), pages 1325-1345, June.
    6. Meng Wang & Yaoqiu Kuang & Ningsheng Huang, 2015. "Sustainable Urban External Service Function Development for Building the International Megalopolis in the Pearl River Delta, China," Sustainability, MDPI, vol. 7(10), pages 1-26, September.
    7. Naresh R. Pandit & Gary A. S. Cook & Feng Wan & Jonathan V. Beaverstock & Pervez N. Ghauri, 2018. "The Economies and Diseconomies of Industrial Clustering: Multinational Enterprises versus Uninational Enterprises," Management International Review, Springer, vol. 58(6), pages 935-967, December.

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