The influence of city reputation on T-KIBS concentration

Abstract

ABSTRACT In a context of increasing intercity competition, one of the major goals of the cities is to attract business services, in particular knowledge-intensive business services (KIBS). In spite of recognized importance of some locational determinants, already identified in the literature, not all of the determinants of KIBS locational choices are known. Studies that considered city reputation as a possible antecedent of KIBS location are scarce. This study aims to examine the influence of city reputation on technology-KIBS urban concentration. Building on the theoretical arguments that support the geographic centrality of high-order services, the study shows that different combinations of antecedent conditions can justify a high concentration of technology-KIBS (T-KIBS) in urban areas, including the combination of city reputation with access to clients. The results support the idea that geographical proximity to clients is also important in technology-related industries, in particular the ones that are knowledge-intensive. The findings suggest that tourism policies that enhance city reputation can be included in cities’ strategies designed to attract business services. Furthermore, it is highlighted that policy-makers do not need to improve all conditions to improve the city competitiveness and they can use different combinations of factors to attract T-KIBS.