This paper analyses regional variations in the growth, innovativeness
and other performance characteristics during the 1990s of a sample of
1,000 small and medium sized manufacturing and service enterprises (SM
Es) in Britain. Set within a theoretical context provided by Vaessen's
critique of regional resource munificence theory, it shows that South
East core region firms grew faster than those in Peripheral regions,
and reported more original innovations, but that the latter had a bett
er record of continuing innovation and higher R&D intensity. Significa
nt regional differences in competitive environments and collaborative
networking also carry implications for long term competitiveness.