The Clustering of Financial Services in London*



any new clusters that are not in close proximity to existing concentration as illustrated by
the following interview extracts:

We (the UK) won’t be able to afford to put up new infrastructure projects in
Huddersfield or Glasgow if the UK plc doesn’t make the money that it needs to in
London. If London is seen by certain people in government as just another English
city - disaster.

We did look at moving to Reading and we looked at the costs of moving there as
opposed to staying in the City ... it’s the services, security, suppliers etc., etc. which
wouldn’t be available outside the concentration . Without IT infrastructure and
specialists we die.

If people say, we don’t like what’s going on in the City, we’re going to create a new
financial industrial complex somewhere, say Reading, that’s engineering, that’s not
going to work.

What you have in London is a European regional center servicing the largest
companies in Europe. For example, even a large global investment bank which has
let’s say 250 people in Frankfurt, they will service German companies part out of
Frankfurt but they’ll still service them out of London as well and that isn’t going to
happen from Manchester.

For a US company, given the choice, they could just about get their mind to Windsor
i.e., outside London but if you said to their employees in Atlanta, we’re moving you to
Blackburn to work in our European head office, they’d all head for the hills.

We considered as part of our strategic plan for this area whether we might review the
lease on this building given that a lot of the building is used for back office activity.
And perhaps it wasn’t necessary to be bang in the middle of the City and we didn’t
want to go to Croydon or Bangladesh or Manchester, so we thought about London
Bridge.

I suppose I see Canary Wharf more as overspill than as a separate cluster . it is
surprisingly difficult to get people in different offices to act as part of the same team .
we have one big x office in the UK and it’s much more cohesive (than between offices
in 7-8 German cities). I think if that sort of competition between regional centers is
replicated, it must damage the whole.

4 Conclusions and Policy Recommendations

The principal conclusion of this study is that London has a dynamic and successful
financial services cluster which works in line with extant knowledge of the clustering
phenomenon. Clustering continues to be important in spite of the costs associated with

36



More intriguing information

1. Analyzing the Agricultural Trade Impacts of the Canada-Chile Free Trade Agreement
2. Response speeds of direct and securitized real estate to shocks in the fundamentals
3. Empirical Calibration of a Least-Cost Conservation Reserve Program
4. Examining Variations of Prominent Features in Genre Classification
5. Bird’s Eye View to Indonesian Mass Conflict Revisiting the Fact of Self-Organized Criticality
6. Business Networks and Performance: A Spatial Approach
7. The Trade Effects of MERCOSUR and The Andean Community on U.S. Cotton Exports to CBI countries
8. The name is absent
9. Pass-through of external shocks along the pricing chain: A panel estimation approach for the euro area
10. The mental map of Dutch entrepreneurs. Changes in the subjective rating of locations in the Netherlands, 1983-1993-2003
11. The name is absent
12. Problems of operationalizing the concept of a cost-of-living index
13. The name is absent
14. PERFORMANCE PREMISES FOR HUMAN RESOURCES FROM PUBLIC HEALTH ORGANIZATIONS IN ROMANIA
15. The name is absent
16. Multi-Agent System Interaction in Integrated SCM
17. A Principal Components Approach to Cross-Section Dependence in Panels
18. Fiscal Sustainability Across Government Tiers
19. Consumption Behaviour in Zambia: The Link to Poverty Alleviation?
20. Comparison of Optimal Control Solutions in a Labor Market Model