Local economic development strategies for the UK computer services sector

Abstract

This article considers ways in which local economic policy makers can best proceed with respect to the development of the computer services industry, one of the fastest‐growing sectors of the British economy. I suggest that knowledge of the structural and locational dynamics of the industry is necessary before effective interventions can be made. My analysis indicates that while policies focusing on the attraction of investment from outside the local area, or on infrastructural and communications upgrading may well be ineffective, the provision of seed funding and advice for new and recent start‐ups, in conjunction with attempts to stimulate the local market for computer services, may have positive impacts.