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The Influence of Regional Development Incentives and Infrastructure on the Location of Small and Medium Sized Companies in Europe

Author

Listed:
  • Barry Moore

    (Department of Land Economy, University of Cambridge, 19 Silver Street, Cambridge CB3 9EP, UK)

  • Peter Tyler

    (Department of Land Economy, University of Cambridge, and PA Cambridge Economic Consultants)

  • Dan Elliott

    (PA Cambridge Economic Consultants)

Abstract

Greater levels of economic integration within Europe will bring more intense competition, not least for small and medium sized enterprises (SMEs). This paper identifies the key factors in the SME location decision from a survey of almost 1400 companies. The most important factor was the availability of regional development assistance, followed by the quality and size of the labour supply, including wage levels, and the potential for future expansion. Infrastructure was found to be relatively unimportant as a locational determinant. These factors apply with considerable uniformity to different industrial sectors, but there are major differences between countries within the European Community (EC).

Suggested Citation

  • Barry Moore & Peter Tyler & Dan Elliott, 1991. "The Influence of Regional Development Incentives and Infrastructure on the Location of Small and Medium Sized Companies in Europe," Urban Studies, Urban Studies Journal Limited, vol. 28(6), pages 1001-1026, December.
    • Handle: RePEc:sae:urbstu:v:28:y:1991:i:6:p:1001-1026
    DOI: 10.1080/00420989120081171
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    References listed on IDEAS

    as
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    3. Twomey, Jim & Taylor, Jim, 1985. "Regional Policy and the Interregional Movement of Manufacturing Industry in Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(3), pages 257-277, November.
    4. Theil, Henri, 1969. "A Multinomial Extension of the Linear Logit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(3), pages 251-259, October.
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    Cited by:

    1. Fenghua Pan & Bofei Yang, 2019. "Financial development and the geographies of startup cities: evidence from China," Small Business Economics, Springer, vol. 52(3), pages 743-758, March.

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