Service Competitiveness and Urban Innovation Policies in the UK: The Implications of the 'London Paradox'

Wood P. Service competitiveness and urban innovation policies in the UK: the implications of the 'London paradox', Regional Studies. The policy models currently employed in British cities to promote urban economic innovativeness and competitiveness echo national policies by being science-, manufacturing- and technology-based. Yet, the most powerful driver of both modern UK economic success and regional and urban inequality has been London-based innovation. This does not depend on local technological initiatives, but on labour-intensive, knowledge-based processes, especially within the financial and business services. This paper examines the importance of service-based innovation and competitiveness in the English urban system, dominated by London, and its implications for urban innovation policies. These currently offer little support to other UK cities either in gaining from London's experience of service-led success, or challenging its dominance over the most innovative tradable services.