INWARD INVESTMENT AND LOCAL LINKAGES - HOW DEEPLY EMBEDDED IS SILICON GLEN

Substantial opportunities were created for local linkages by the sharp growth in output of the Scottish electronics industry in the 1980s. Twelve per cent of material inputs by value are currently sourced locally. Evidence about the nature of these links suggests that many correspond more closely to a simple dependent model than to a self-sustaining development scenario. Most involve capacity- or labour sub-contracting, or supply of relatively bulky, simple components. High value links are limited to branches of foreign suppliers. The reasons for the pattern of sourcing include issues of technology, quality, responsiveness and price. Examples of corporations which stress these attributes are provided.