High-Tech Firms’ Location Considerations within the Metropolitan Regions and the Impact of Their Development Stages

Abstract

The determinants of firms' location choice have changed over time, in particular in the high-tech industry. Few studies that investigate the factors that influence firms' location decision distinguish between firms in their early stages of life cycle and more established high-tech firms. This study identifies the considerations prioritized by high-tech firms in both categories in the process of choosing a location within a metropolitan region for establishing or relocating their business. The intra-metropolitan competition for high-tech plants was examined using data gathered through field surveys of managers of such firms in the Tel-Aviv metropolitan region. The findings shed light on the importance ascribed to internal and external factors in the decision on location made by the firms' managers.