The Growth of an Indigenous Electronics Industry: Scottish Printed Circuit Boards

Abstract

The growth and development of the Scottish printed circuits industry is examined in this paper. It is an unusual case of strong indigenous growth with limited foreign ownership. The sector produces a quarter of all UK sales of open-market printed circuit boards (PCBs) and employs 1800 people, 50% more than a decade ago. Its growth is explained in terms of four key interrelated factors: the special nature of PCB production, local demand conditions, the sector's organisational structure, and government support. The sector is best conceptualised as part of a wider division of labour within the regional electronics industry rather than as a distinct, closely connected cluster. Contemporary pressures promoting the sector's restructuring are discussed in the conclusion. A more active policy response may be required to secure the sector's future. Closer cooperation between the firms may also be important in overcoming present fragmentation.