The competitiveness of business service firms: a matched comparison between Scotland and the south east of England

In this paper we present a comparative analysis of the competitiveness and performance of matched pairs of business service companies in Scotland and south east England. Several dimensions of performance are investigated for five industries: market research; management consultancy; product design; graphic design; and advertising. Value added per person is one-quarter higher in the English offices and they achieved a much greater degree of export orientation - one-fifth of sales - than the Scottish firms at 4%. Possible demand and supply side causes of such differences are reviewed and potential policy responses considered. -Authors