Contribution of local theories for regional development: an empirical study applied to technology-based firms

Abstract

This research aims to identify the factors which influence the location of technology-based firms. For this purpose, a conceptual research model on the location of firms, based on the neoclassical, behavioural and institutional views is developed. In order to reach these objectives, an empirical study was developed based on a questionnaire filled by 203 technology-based firms located in the Beira Interior region (Portugal). The resulting data was subject to two types of statistical analyses: bivariate and multivariate analyses. It was possible to identify crucial factors that mostly influence the location of these firms. These factors were: founder’s wish to live in a particular locality, employees’ wish to live in that particular locality; proximity to the residence of the founder; birthplace of the founder; and the level of economic activity in the region.