Abstract
Two major agglomerations or clusters (West Midlands and Greater London) have been shown to have been the driving force behind the historical geography of the British motorcycle industry (its distribution over time and the rate at which motorcycle marques entered and exited). A net positive effect on the West Midlands and a net negative effect on the Greater London area were exerted by motorcycle marque exits from the industry (shakeout). Spin-off of new companies was primarily an internal process in the West Midlands and an external process in the Greater London area. The high level of spatial concentration, The rapid rate of technology diffusion, the large number of spin-off firms and the high level of spatial concentration helped to maintain a wide variety of marques over a long time in the British motorcycle industry. However, the result was an industry that was stagnant and increasingly innovation-averse with each successive shakeout period, which eventually ended in its near total collapse.
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