Dynamics of clustering and performance in the UK opto-electronics industry

The spatial 'clustering' of firms, resources, and infrastructure is seen as having significant benefits for individual enterprises and regions. This proposition is tested through a survey of an under-researched sector, the UK opto-electronics industry, where a number of clusters exist. Analysis at the company and regional levels shows that clustering confers no particular performance benefits when comparisons are made with companies not in clusters. An analysis of the networking dynamics reveals that markets and life-cycle effects are more significant factors affecting performance.