Abstract
Abstract This short chapter compares the dynamics of the process by which clusters have emerged in the UK and US computer industries. It summarizes growth and entry models for the computer industries in the two countries. A full technical account of these models is given in Baptiste and Swann (1996). In both countries, clusters of industrial strength in particular sectors attract new entrants to the industry, and incumbent firms located in a cluster that is strong in their own subsector of the industry tend to grow faster than average. While there are some second order differences between the models estimated for the USA and the UK, it appears that the dynamics of clustering are similar. In particular, there is no evidence that clustering effects are weaker in the UK than in the USA. This last conclusion is surprising, perhaps, but it suggests that the more modest clustering effects in the UK are a function of the smaller scale of the market, rather than a weaker clustering dynamic per se.
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