New Industrial Spaces and the British Motor Sport Industry

Overview of the British Motor Sport Industry (BMSI)

• Authors: Nick Henry, Steven Pinch, Stephen Russell

• Journal: Area, March 1996

• Volume: 28, No. 1, Pages 25-36

• Concepts Discussed: Untraded interdependencies, New Industrial Spaces

Introduction

• BMSI is a successful, concentrated network of small firms producing advanced products for global markets.

• The report critiques the lack of focus on Britain's industrial success in global discussions.

• It aims to demonstrate BMSI's regional success and employ untraded interdependencies as an explanation.

Key Features of the BMSI

• Displays characteristics of a New Industrial Space:

  • Technological Advancement: Rapid product and technological changes.

  • Industry Composition: Predominantly small and medium-sized enterprises (SMEs).

• Economic Success: Despite overall economic decline, BMSI remains competitively dominant globally.

• International Competitiveness: Examples include British dominance in Formula One racing.

Regional Concentration

• BMSI exhibits notable geographical clustering, particularly in Southern England, highlighting trends in proximity to suppliers and skilled labor.

• Motor Sport Valley: Described as a hub for motor racing excellence, mainly centered around Oxfordshire and nearby regions.

Untraded Interdependencies

• Defined as non-market relationships and conventions that facilitate knowledge sharing and growth.

• Concept is linked to how social practices and networks enhance economic outputs.

• Emphasizes cultural and institutional factors driving local economies rather than just economic transactions.

Innovation and Competition

• High levels of technology innovation in racing car design influenced by competitive pressures.

• Talent mobility: Engineers and teams frequently share knowledge across companies, enhancing the diffusion of innovations.

• Despite competitive sentiments, collaboration is vital for the industry's general health, illustrated by past events where teams shared resources and knowledge to ensure a competitive environment.

• Sponsorship dynamics influence engineering decisions and highlight marketing's intersection with technical advancements.

Conclusion

• BMSI serves as a critical case study of localized economic growth combined with cultural practices in advanced industries.

• Suggests further investigation into the idea that such interdependencies can denote the concept of a New Industrial Space.

• The findings push for a deeper understanding of the socio-cultural dimensions of economic success in high-tech industries.