The rationale for location preferences of technology-based small firms in the UK

Abstract

This study examines the funding issues of technology-based small firms and the role of locations where identical firms tend to cluster around a centre of knowledge creation or other research base. In the UK, it is commonly known as science parks or business incubators whilst elsewhere it may be known as technopoles, growth poles and/or science cities. Firms choose such clusters due to the perception of a supportive environment that adds value to these firms. The results suggest that at the early stages of development, technology-based small firms seek better locations for recognition, showcasing and accessing other necessary facilities. Science parks are the locations which may best fulfil all these needs of the technology-based small firms. It can be, therefore, argued that owners choose science parks because such privileges may be hard to get in other locations such as the founders' home or other similar locations.