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The historical geography of the British motorcycle industry (its distribution over time and the rate at which motorcycle marques entered and exited) shows two major agglomerations or clusters (West Midlands and Greater London) to have been the driving force behind the industry. Motorcycle marque exits from the industry (shakeout) had a net positive effect on the West Midlands and a net negative effect on the Greater London area. Spin-off of new companies was primarily an internal process in the West Midlands and an external process in the Greater London area. The high level of spatial concentration, the rapid rate of technology diffusion, and large number of spin-off firms helped the British motorcycle industry to maintain a wide variety of marques over a long time. However, each successive shakeout period resulted in an industry that was increasingly innovation-averse and stagnant, eventually ending in its near total collapse. [ABSTRACT FROM AUTHOR]