Footloose: An analysis of the drivers of firm relocations over different distances

This paper examines the differences in the drivers of short and long distance firm relocations by conducting an event history analysis on a panel dataset of Dutch firms. Our findings indicate that short distance relocations (within municipalities and labour markets) are triggered by growth and the corresponding need for more space, while longer distance relocations are mainly influenced by regional characteristics. The spatial concentration of similar or related firms, a higher level of urbanization and R&D intensity keep firms from leaving their labour market region, but firms are more inclined to leave regions with a higher share of innovative firms.