The formation of new manufacturing establishments in the Central Clydeside and West Midlands Conurbations 1963-1972: A comparative analysis

Firn J. R. and Swales J. K. (1978) The formation of new manufacturing establishments in the Central Clydeside and West Midlands Conurbations 1963-1972: a comparative analysis, Reg. Studies 12, 199-213. Little research has been undertaken on the birth rates of new manufacturing enterprises either at a national or a regional level. This paper focuses on the role of new firms in regional economic development by analysing the formation of new manufacturing establishments in the Central Clydeside and West Midlands Conurbations between 1963 and 1972. Marked differences are revealed in the organisational structure of new establishments in the two regions, with the West Midlands showing an unexpectedly poor performance in generating new firms. The results suggest that while regional policy has been effective in transferring employment to the development areas, the low rates of new enterprise formation shown in both conurbations pose substantial long-term problems for both regional economic development and small firm sector policies.