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Location Of High Technology Industries And Regional Development €“ The Israeli Case

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  • Daniel Shefer

Abstract

This paper reviews and empirically examines the effectiveness of the Israeli government's declared policy to induce the location of high technology industries in developing regions. The first section of the paper reviews the literature on high technology industry location. The second section presents the findings from the analyses of a sample of 53 high technology Israeli firms in regard to their critical locational determinants. The findings corroborate the results reported in other similar studies. High technology industries, primarily those engaged in research and development, appear to favor the large urban concentrations, where agglomeration economies, large pools of skilled workers and high quality educational and cultural facilities exist. High technology firms which choose to locate in peripheral regions engage primarily in production activities and employ larger proportions of unskilled and semi†skilled labor. The average size of these firms is greater than their counterparts, firms located in and around urban concentrations.

Suggested Citation

  • Daniel Shefer, 1993. "Location Of High Technology Industries And Regional Development €“ The Israeli Case," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 5(2), pages 206-219, July.
    • Handle: RePEc:bla:revurb:v:5:y:1993:i:2:p:206-219
    DOI: 10.1111/j.1467-940X.1993.tb00131.x
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