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Urban Studies, Vol. 30, No. 10, 1629-1652 (1993)
DOI: 10.1080/00420989320081631
© 1993 Urban Studies Journal Limited

The Competitiveness of Business Services and Regional Development: Evidence from Scotland and the South East of England

P.N. O'Farrell

Department of Economics, Heriot-Watt University, Riccarton, Edinburgh EH14 4AS, UK

D.M. Hitchens

Department of Economics, Queen's University Belfast, Belfast BT7 INN, UK

L.A.R. Moffat

Department of Business Organisation, Heriot-Watt University, Riccarton, Edinburgh EH14 4AS, UK

This paper presents a matched-pairs analysis of the competitive performance of business service companies in Scotland and the South East of England. Value added per person is one-quarter higher in the English firms and a significantly higher proportion of them (49 per cent) have introduced a new service during the previous five years compared with 34 per cent of Scottish businesses. The latter were also more likely to function as multi-service companies reflecting the greater demand in Scotland for a more generalised service offering. The English service businesses also achieved a much greater degree of export orientation. The paper reviews various supply- and demand-side causes of the performance differences and the implications of potential policy responses are considered.


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