Local economies and business networks re‐visited. A case study of business and professional services in London

Abstract

This article describes networks among business and professional services (BPS) firms in London, and deals with the relationship between the businesses interviewed and their locality. The article is based on empirical material derived from a large number of interviews with BPS firms in central London. It is noted that lateral links between firms are poor, relationships are better characterised as competitive rather than co‐operative, and businesses tend to take little interest in the various support agencies. Although all the businesses interviewed placed great emphasis on the development of close, co‐operative relationships with clients, markets are geographically diffuse. However, despite the weakness of localised, inter‐firm links, businesses were able to identify a number of valuable and distinctive assets attached to their current location, which implies that the “local economy” continues to be important. The article finishes briefly with some implications for local economies and appropriate methods of business support.