These findings also help to explain the difference between the types of FDI which each region predominantly attracts: engineering, automotive and software activities, in the case of the West Midlands, and electronics and services activities, in that of Scotland.
This contrasting pattern can be explained at least in part by the findings reported above. Both regions exhibit path dependency in terms of the type of FDI that they attract, showing an apparent continuing tendency to attract FDI into sectors such as engineering and electronics that are already significantly represented in the West Midlands and Scotland. However, the aggregate data collected over time hides the fact that there are changes taking place in the structure of both regional economies influencing the focus of FDI.