FWRECR17135BEIS - Drivers of Firm Relocation

To explore the drivers for company relocation to and within the UK, updating and extending the existing evidence base to inform the delivery of the industrial strategy. An understanding of the current hard and soft factors influencing relocation is required to drive growth across the country. Up to date evidence is needed to inform any policy making that would influence incentives around firm relocation decisions, as well as informing policymakers on which barriers faced by firms wishing to expand are the most significant. Additionally, a better understanding on the drivers of firm relocation will inform the work on retaining companies within the country as the UK leaves the European Union and attracting new foreign direct investment. There is clear overlap between this and the factors influencing where businesses wishing to start and grow choose to locate. Objectives 1. To update the evidence base on why some firms choose to relocate all their business or some functions and what drives their locational choice in a modern economy. 2. To extend the existing research to cover more sectors of the economy, reflecting changes in sectorial composition of the country since the 1970s. 3. To compare the drivers of relocation between different types of companies (for instance by business size, sector, and ownership). 4. To review the evidence on attractiveness of different UK locations, and the UK more generally Policy development requires good and up to date supporting evidence. Out of date evidence makes it difficult to confidently assess the potential effectiveness of policy options to influence the location of firms across the country, whether relocating from within the UK or from overseas. Timely evidence on the specific reasons why companies may choose to relocate part or all of their operations outside of the UK is also required. Research is therefore needed to update the existing evidence base, informing policy making to deliver the UK's industrial strategy and the Local Industrial strategies Research Questions 1. What are the main reasons that cause companies to choose to relocate? 2. Which are the most important considerations that relocating companies make when choosing a new location, whether within the UK or overseas? 3. How do the drivers of company relocation differ between domestic and international companies, between different firms of different sizes, sectors, and growth ambitions, and between different ownership and operational structures? 4. What are the relocation trends, in terms of businesses are moving away from certain local areas to others? 5. What are the elements that different UK locations, and the UK more generally, attractive for businesses