Why choose technology parks for business location in Pakistan

Purpose - Technology parks (TPs) are used as a tool to improve economic outlook of the region through innovation generation. This study aims to evaluate the perception of tenants of TPs to determine the gap in the expectation and identify types of firms preferring to locate in a TP. Design/methodology/approach - This is the first study in Pakistan to collect data about perceived benefits of TPs in Pakistan from the decision-makers of 110 tenant firms. The cluster analysis and lift ratios are used to draw statistical inferences. Findings - The firms can be classified into three clusters – commercial-orientation firms, science and technology-oriented firms and young tech firms – with distinct needs for survival and growth in a TP. Moreover, TPs should not just be treated as property projects for providing support services, also knowledge sharing, training and development opportunities and proximity to hubs of knowledge and markets is vital to attract a variety of industry. Originality/value - Academia and policymakers have been equally interested in the potential impacts of these innovation hubs. However, there have been lack of empirical evidence on how and what to offer the incumbents of these TPs. The government of Pakistan is trying to build more TPs for promoting business activities under CPEC. Therefore, it is extremely important to determine the needs of tenants of TPs for successful utilization of huge amount of public money to be invested in TPs.