| The competition for retaining and attracting businesses considering migration is intense. Economic development policy makers and practitioners, however, often engage in these pursuits with a lack of key information about the effectiveness of various broad strategies and the locational behavior of specific business sectors and sizes and decision-maker types. The vital question, thus, is how do various factors influence business location decisions? The literature offers insights into this question, but weaknesses are found, particularly in addressing the influences of "quality of life" factors and in guiding strategies that are sensitive to particular regional contexts.;The methodology devised to research this question is based on a survey of Rensselaer County (NY) Regional Chamber of Commerce businesses and on case studies of firms in the broader region that have recently migrated or considered migrating. The micro-data obtained through the survey is analyzed for identifying general, as well as business and decision-maker specific, impacts of location factors. A component of the latter objective is a logistic regression approach. The case studies complement the survey results by, for instance, providing greater depth of insights.;The analyses suggest that a number of location factors directly related to cost and demand considerations, such as the quality/availability of labor and proximity/access to markets, exert a sizable influence on business location decisions. "Quality of life" factors, such as the natural environment and traffic congestion, also play a large role. Secondly, the analyses indicate that various business sectors and sizes and decision-makers of various ages value factors differently. Manufacturers and services display many notable contrasts. These findings, combined with insights into the frequency of business migration, firms' information gathering channels, and job creation sources, highlight broad and specific development strategies for Rensselaer County and similar areas, which should focus on attracting businesses expressing an interest and be complemented by retention efforts and the creation of an environment conducive to the growth of all existing firms. The results also suggest that formal location theorists should lessen the adherence to strict profit maximizing assumptions and that more theories that explore the locational behavior of specific business sectors and sizes should be designed. |
