Does Light Touch Cluster Policy Work? Evaluating the Tech City Programme

Max Nathan

No 12631, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: economic development; technology; clusters; cities; synthetic controls (search for similar items in EconPapers)
JEL-codes: L53 L86 O31 R30 R50 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2019-09
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Research Policy, 2022, 51 (9), 1104138

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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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