The dynamics of industrial clustering in British financial services

This study examines patterns of clustering in the British financial services industry. It studies the effects of cluster strength on the growth of the firm and on rates of surviving entry. We find positive, large, and statistically significant clustering effects in the British financial services industry, both in the growth model and the entry model. The results for this service industry are very similar to those observed in earlier studies which have examined clustering patterns in high technology manufacturing industries.