Service competitiveness and urban innovation policies in the UK: the implications of the 'London paradox'

Abstract

The policy models currently employed in British cities to promote urban economic innovativeness and competitiveness echo national policies by being technology-based. Yet the most powerful driver of both UK economic success and regional and urban inequality has been London-based innovation. This does not depend on technological initiatives, but on labour intensive, knowledge-based processes, especially within the financial and business services. This paper examines service-based innovation and competitiveness in the English urban system, dominated by London, and their implications for urban innovation policies. These offer little support to other UK cities in gaining from London’s experience of service-led success, or challenging its dominance of innovative tradable services.