Ownership, organization and regional dependence in the Scottish electronics industry

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Abstract
McDermott P.J. (1976) Ownership, organization and regional dependence in the Scottish electronics industry. Reg. Studies 10, 319–335. Recent studies of Scottish industry have indicated the limited achievements of local enterprise, the low multiplier impact of indigenous establishments as a result of local market dependence, and increasing external control of manufacturing. These elements of the regional problem in Scotland are examined with reference to electronics, an industry which has acted against structural disadvantage through substantial employment growth. The origins, ownership, and structure of the industry belie the existence of an indigenous electronics complex in Scotland, reflecting instead its origins in regional development policies. A detailed study of the electronic components sector shows high levels of local linkage to be most characteristic of Scottish-owned companies, betraying their dependence upon externally-controlled customers. The form of organization at the level of the individual firm associated with lower levels of dependence upon local markets is that which reflects membership of a wider corporate group.

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