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Cluster dynamics: new evidence and projections for computing services in Great Britain

Bernard Fingleton, Danilo Camargo Igliori, Barry Moore

Fingleton, Bernard, Danilo Igliori, and Barry Moore. "Cluster Dynamics: New Evidence and Projections for Computing Services in Great Britain." Paper presented at the International Seminar Series in Regional Economics, Economic Geography and Clusters, Cambridge 2003.

Abstract: This paper provides empirical evidence that contribute with the testing of some of the main hypotheses about the importance of horizontal clusters for the growth of employment in small firms using data from Computing Services in Great Britain. In the main section of the paper, spatial econometric models are estimated controlling for supply and demand side conditions in order to isolate the effect of initial cluster intensity. The paper then projects cluster development using the fitted model, showing how clusters are likely to emerge and intensify. One aspect of the paper is the existence also of a declustering mechanism due to congestion effects. Some speculative analysis is provided of the likely extent and intensity of de-clustering and the policy implications of the trends observed.