The performance of business-service firms in peripheral regions: an international comparison between Scotland and Nova Scotia

In this paper a comparative analysis of the competitiveness and performance of business-service companies in two peripheral regions, Nova Scotia and Scotland, is presented. Several dimensions of performance are investigated for four industries: market research, management consultancy, advertising, and graphic design. Value added per person is one third higher in Scotland compared with Nova Scotia, and Nova Scotian offices derive a much higher proportion of their turnover from government and public-sector contracts. In general, however, a very consistent picture emerges of the relative position of business services in the two regions. Possible demand-side and supply-side causes of such differences are reviewed and potential policy responses considered. -Author