Cluster Dynamics: New Evidence and Projections for Computing Services in Great Britain

Posted: 10 Nov 2009

See all articles by Danilo Camargo Igliori

Danilo Camargo Igliori

University of Cambridge - Department of Land Economy

Barry C. Moore

University of Cambridge

Bernard Fingleton

University of Cambridge - Department of Land Economy

Multiple version iconThere are 2 versions of this paper

Date Written: 2005

Abstract

This study tests the hypothesis that the level of horizontal clustering has a positive impact on the subsequent employment growth of small- and medium-sized enterprises (SMEs) in computing services in Britain. Another purpose is to determine whether negative impacts on employment growth take place above a certain level of horizontal clustering. Following an overview of theoretical issues, data on the spatial distribution and employment performance of the computing services sector are analyzed. These data cover the period from 1991 to 2000 and are analyzed at the level of the 408 unitary and local authority districts (UALADs) of Great Britain. An initial model of employment growth in SMEs is presented. Spatial econometric models are estimated to isolate the effect of initial cluster intensity. Regression estimates indicate that employment change is significantly linked to the initial intensity of horizontal clustering. Finally, a fitted model is used to project cluster development. This model reveals that clusters are likely to emerge, intensify, and then decline as negative externalities take effect. In short, the study's principal hypotheses are supported. A de-clustering mechanism designed to counter congestion effects is proposed. (SAA)

Keywords: Spatial distribution, Horizontal clusters, Computer services industry, Firm growth, Job creation, Regional development, Spatial analysis, Clusters

Suggested Citation

Igliori, Danilo Camargo and Moore, Barry C. and Fingleton, Bernard, Cluster Dynamics: New Evidence and Projections for Computing Services in Great Britain (2005). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1503232

Danilo Camargo Igliori (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

Barry C. Moore

University of Cambridge ( email )

Trinity Ln
Cambridge, CB2 1TN
United Kingdom

Bernard Fingleton

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

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