Emergence of a digital cluster in east London: birth of a new hybrid firm

Abstract

PurposeThis paper aims to investigate the composition and geography of an emerging “creative digital” cluster in London, in the context of cluster theory and emerging creative cluster concepts. This argues that this cluster cannot be divorced from the wider regional creative and digital economy and that its inter-dependence with a small number of “content” industries is critical to its formation. The significance of the “creative digital” firm blending design, communications and technological development is highlighted, as is its unique position in enabling such firms to flourish.Design/methodology/approachThe research combines both quantitative with qualitative methods, based on cluster analysis of firm-level business data using GIS mapping software at a regional level; location quotient (LQ) analysis to reveal firm concentration at a local cluster level; an online questionnaire survey of firms within this cluster; participant observation of firm meet-ups over a three-year period; and face-to-face interviews with a sample of firms/owners.FindingsThe evidence generated from this research confirms the distinctive nature of this digital cluster and the benefits of co-location in an industrial district with proximities to a range of advanced producer services and cultural content provision. This has revealed an emerging “techno-creative habitus” (Scott 2010), which has been able to take advantage of market fluidity through a network of communities of interest firms, which have reshaped an existing global hub locally anchored by a highly porous locale.Originality/valueThe research is novel in combining spatial data analysis with qualitative research into firm behaviour and place-based factors that support the growth of this cluster. This has revealed new insights into the hybrid nature of tech firms that integrate content with both hardware and software applications and who innovate and grow through inter-personal cluster networks. This contributes to cluster theory and extends the range of proximities – social, institutional and cultural – that enhance the geographic advantages of clustering in this case.