The cluster concept has been promoted in recent years as a panacea for economic development, both locally and nationally. One source of theoretical and empirical ambiguity in the concept is related to the spatial processes underpinning cluster development, and to the relationship between cities and clusters in particular. This paper examines the case of the biotechnology cluster in Scottish cities, with particular reference to Glasgow and Edinburgh. The promotion of a biotechnology cluster has become a priority for Scotland's economic development strategy because of its potential role in the knowledge-driven economy. The paper examines the major locational dynamics affecting biotechnology in Scotland and interrogates the balance between the major forces driving the development of biotechnology firms in their urban location. It concludes that the importance of cities to cluster growth lies mainly in the size and diversity of their labour markets, in the presence of key research institutions and public-sector anchors and in the provision of infrastructure and services. At the same time, historical legacies, national and international regulatory frameworks and external linkages play an important role in shaping the development trajectory of Scotland's biotechnology cluster.
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