The Clustering of Financial Services in London*



presence of other banks as making an important contribution to innovation. The same
tendency is evident for fund management, but not for management consultancies. Larger
firms are significantly more likely to rate the presence of other firms in the same line of
activity as being important. Banks are also significantly more likely to rate the presence of
firms who supply complementary goods and services as being important to innovation.
The same tendency is more weakly evident for investment banks.

Table 7: Local Relationships and Innovation

How important are the following types of local firms/institutions in helping your firm
achieve innovative solutions?

1

2

3

4

5

0

Total

A pool of talented labor with relevant skills

19-

42

79

111

22^

1078

Customers

2T

3F

60

69

102

1T

1063

Firms who help you supply your service/product

28

44

80

71

58

26

930

Other firms in the same line of activity

38

64

96

67

18

20

812

Industry associations

65

72

77

44

18

29

706

Academic institutions

98

85

55

24

10

33

579

Local government

139

63

28

16

7

51

448

Table 8: Presence of other Firms in the Same Line of Activity in Promoting
Innovation

Not important

Moderately
important

Important oɪ
very important

TOTAL

Banking______________

Count___________

8.0

___________18.0

____________18.0

44.0

Expected Count

___________14.5

___________16.0

____________13.4

44.0

Insurance______________

Count___________

___________18.0

__________23.0

____________16.0

57.0

Expected Count

__________18.8

__________20.8

____________17.4

57.0

Legal services__________

Count___________

__________20.0

___________17.0

____________18.0

55.0

Expected Count

___________18.2

__________20.0

____________16.8

55.0

Investment banking

Count___________

____________6.0

____________7.0

______________7.0

20.0

Expected Count

______________6.6

_____________7.3

_______________6.1

20.0

Fund management_____

Count___________

____________3.0

____________6.0

______________8.0

17.0

Expected Count

______________5.6

____________6.2

_____________5.2

17.0

Management consultancy

Count___________

___________18.0

____________8.0

_____________2.0

28.0

Expected Count

____________9.3

___________10.2

_____________8.5

28.0

Accounting____________

Count___________

____________5.0

____________7.0

______________3.0

15.0

Expected Count

____________5.0

____________5.5

________________4.6

15.0

Total___________________

Count___________

__________78.0

__________86.0

___________72.0

236.0

Expected Count

___________78.0

__________86.0

____________72.0

236.0

24



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