New study shows the importance of interregional connectivity between business clusters for fostering sustainable growth and strengthening the national economy.
A new study mapping interregional connections across the UK is shedding light on different regional economies and how they support each other for better growth and productivity. The research, by the Bennett Institute for Public Policy, Cambridge, challenges traditional narratives of regional competition and shows policy decision-makers the importance of understanding the interconnected nature of the country’s regional economies.
In a new working paper, Connected Clusters 2: Mapping Interregional Connections in the UK, research shows that businesses do not operate in isolation within single regions but are part of a broader, interconnected economic landscape. Understanding these interregional connections between similar business sectors is crucial for local and national governments to develop policies that foster balanced and sustainable economic growth.
Burcu Sevde Selvi, lead author of the paper, says: “This research advances our understanding of how economic ties between regions function, offering valuable perspectives for policymakers seeking to support businesses and local economies in a more nuanced way.”
The authors analysed the registered addresses and trading locations of knowledge-intensive businesses located across the UK in the regions represented by the Growing Together Alliance (GTA), comprising of Northern Powerhouse Partnership, BusinessLDN, Business South, Business West, Cambridge Ahead and the North West Business Leadership Team. By identifying different regional trading patterns the research helps to understand the strengths and specialisations of each area and how these could contribute to a more interconnected and resilient national economy.
Says co-author, Owen Garling: “Central London – Westminster, the City of London and Camden in particular – remains a critical hub for business activities. Equally, cities such as Manchester, Leeds and Bristol also serve as vital hubs for business activities, attracting firms from various regions and playing a significant role in the broader UK economy. Whilst the research has focussed on the areas covered by the Growing Together Alliance, it also demonstrates the strong business ties beyond their borders, with strong business presences in Birmingham, Cardiff and Edinburgh.”
This new research highlights the importance of fostering regional partnerships to build resilience and shared prosperity across the UK, and complements the Growing Together Alliance report, Connected Clusters (2024), which examines the role of collaboration between regions in driving economic growth.
Read the report: Connected clusters 2: mapping interregional connections in the UK.
The views and opinions expressed in this post are those of the author(s) and not necessarily those of the Bennett Institute for Public Policy.
