Geography Reference
In-Depth Information
the processing and l ows of information that are the lifeblood of the kinds of business
service sector concentrated in inner London. Firms in the region also value highly the
access to knowledge and knowledge spillovers that follows from locating close to support
services, competitors and customers. Banks are key players in this system and were found
to value geographic concentration 'to sustain localised formal and informal networks,
and social interaction . . . for knowledge accumulation and transfer' (City Corporation
of London, 2003, p. 5).
The London labour market is a key mechanism enabling local, national and interna-
tional knowledge spillovers often through networks. Labour can be recruited through
both domestic and international pools. The rewards available in London attract labour
from Europe, North America and the Far East. The intellectual quality of much of this
labour is a source of knowledge spillovers not just from the UK but from other interna-
tional locations. Thus new knowledge is brought into the local networks as a result of the
attraction of following a career path in London. The sheer size of these kinds of labour
market also means that mobility between i rms and sectors is encouraged and this is also
a major source of local knowledge spillovers (City Corporation of London, 2003, p. 6).
Business and social networks are dense in the City of London. Figure 23.5 illustrates
the complexity of network connections within the i nancial services industry. In this
study organisations were asked to say which kinds of i rm were most important to them
in terms of business interrelationships. The arrows show the direction of the relationship.
The thicker the line the more important is the interaction. Briel y, Figure 23.5 shows the
signii cance of banks, legal services and fund management as the hubs of the network.
Banks
Insurance
Management
Consultancy
Accounting
Legal
Services
Fund/Asset
Management
Market
Research
Investment
Banking
Key
5-10%
5-10%
5-10%
5-10%
5-10%
5-10%
Source:
City Corporation of London (2003).
Figure 23
.
5
Networking within the London i nancial services concentration
