Abstract

A growing body of literature, built up over the years, has explored the cluster concept. In parallel, another body of literature has accumulated regarding the diversity and specialisation of cities. There has been little explicit linkage between these two bodies of literature. This study sets out to explore the potential link between these two representations of spatial patterns so that a better understanding of the relationship between the two might be established. The UK Annual Business Inquiry 2007 provides the employment data drawn from various aggregated levels of the SIC 2003 for 70 TTWAs that represent the British Urban System. The paper investigates the extent of spatial concentration of individual sectors, and provides an example of how clusters might be identified spatially. Further analysis, using data drawn from the SIC 1, 2 and 3 digit levels indicates the relationship levels diversity/specialisation have with the clustering of activities, particularly when various sub-sectors are examined. Specific locations, or groups of cities are identified, which reinforce previous understandings of some of the key concepts. The results indicate further analysis of the role of localisation and urbanisation economies and their relationship with diversity/specialisation is required with an added emphasis on occupational, rather than just industrial diversity.

Highlights

  • Over the past 20 years an immense, if somewhat contentious, body of research has evolved exploring the cluster concept

  • The results from the paper clearly indicate that there are different ways one may either identify or construct clusters and understand what they represent when considered relative to a range of other cities and configurations of employment

  • It is clear that there are strong reasons to believe that localisation and urbanisation economies have impacts on cluster formation but perhaps at different scales

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Summary

Introduction

Over the past 20 years an immense, if somewhat contentious, body of research has evolved exploring the cluster concept. While not naive enough to think some grand theory or unification is possible, all the approaches and debates surrounding clusters and specialisation do share one thing in common—the premise that there is something distinctive, if not unique, about either the places or industries examined—the key differences are those of purpose, emphasis, scale and location of analyses Once these differences are recognised one can begin to draw together all strands of the existing research. Considering the above, it is the intention of this paper to explore the context for a link between spatial concentrations of activity, clustering of economic activity and the levels of diversity/specialisation in the urban system of Great Britain. The paper concludes with the identification of future avenues for research that will draw upon the findings of this initial exploration

The Clustering of Economic Activity
The Diversity and Specialisation of Economic Activity in Cities
Data and Techniques
The Location of Economic Activity in the British Urban System
Diversity and Specialisation in the British Urban System
Conclusion
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