Title: The locational factors and performance of the high-tech startups in China

Authors: Utz Dornberger, Xiuhua Zeng

Addresses: Small Enterprise Promotion + Training (SEPT), University of Leipzig, 04107 Leipzig, Germany. ' Small Enterprise Promotion + Training (SEPT), University of Leipzig, 04107 Leipzig, Germany

Abstract: This paper discusses the influence of selected locational factors in the performance of Chinese high-tech startups. The study|s sample was composed of 74 high-tech startups located in Shenzhen. Industrial agglomeration, the presence of suppliers and the immigrant culture were the major reasons that attracted these new enterprises to set up their businesses in Shenzhen. The empirical findings show that the proximity to suppliers and customers was essential for the development of the high-tech startups in this area. The correlations between the high-tech ventures| development and the perceived performance of the local institutions, as well as the local business service providers, turned out to be insignificant. The important implications for policymakers are indicated.

Keywords: locational factors; new firm location; high-tech startups; China; high technology; industrial clusters; suppliers; immigrant culture; entrepreneurship.

DOI: 10.1504/IJESB.2009.023022

International Journal of Entrepreneurship and Small Business, 2009 Vol.7 No.3, pp.312 - 323

Available online: 08 Feb 2009 *

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