Does light touch cluster policy work? Evaluating the tech city programme

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Despite academic scepticism, cluster policies remain popular with policymakers. This paper evaluates the causal impact of a flagship UK technology cluster programme. I build a simple framework and identify effects using difference-in-differences and synthetic controls on rich microdata. I further test for timing, cross-space variation, scaling and churn channels. The policy grew and densified the cluster, but has had more mixed effects on tech firm productivity. I also find most policy ‘effects’ began before rollout, raising questions about the programme’s added value.

Keywords: cities; clusters; technology; economic development; synthetic controls; Max Nathan (search for similar items in EconPapers)
JEL-codes: L53 L86 O31 R30 R50 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2019-08-29
New Economics Papers: this item is included in nep-geo, nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://eprints.lse.ac.uk/103421/ Open access version. (application/pdf)

Related works:
Journal Article: Does light touch cluster policy work? Evaluating the tech city programme (2022)
Working Paper: Does light touch cluster policy work? Evaluating the tech city programme (2019)
Working Paper: Does Light Touch Cluster Policy Work? Evaluating the Tech City Programme (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:103421

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