Project 3.4.3.: Locational behaviour of firms

Project Team

Prof. Peter Cabus (project leader), Prof. Wim Van Haverbeke and Eline Horemans

Objective

This research subject focuses on the management of industrial real estate and on the locational behaviour of firms in general (and not only warehousing).

Research questions/databases

- Focussed studies on locational behaviour of firms in Flanders (Belgium) and on their use of space are necessary to develop an efficient spatial economic policy in general and an efficient land management of industrial estate in particular. A study in the context of the ‘Stratigic Plan Spatial Economic Policy’ (Cabus & Vanhaverbeke, 2004) - based on a large scale survey - already gives a clear picture of locational behaμviour of firms in Flanders. It did however not succeed in developing a consistent locational model. A study on the need for aditional industrial estate in the long run for the administration of spatial policy, lacks critical data on the use of space by firms in different regional economic contexts. It is obvious that the use of space should be influenced by e.g. the degree of urbanisationn what is to be linked to the bidrent-theories. Currently spatial policy does not take these important location factors into account.

Within this context it is necessary to focus in three complementary research topics:

1) locational behaviour of firms in Flanders,
2) the use of space in different regional economic contexts,
3) management of industrial estate.
- Except for industrial estate located in the Flemish harbours, the traditional management of industrial estate consists of selling the land to the firms concerned by public or private developers. This leaves authories with the problem that it is very difficult to have a grip on the management of this estates in the long run. This creates problems in terms of flexibility and of an appropriate management adapted to the real needs of companies during their life cycle. This also leads in many cases to a degrading property.
It is necessary to benchmark in the comparable regions the ways in which public and private developers and investors can be a part of industrial estate management in the long run aiming at flexibility and at quality management.

This leads to three research questions:

1) How to define quality in the context of industrial estate, with respect to firms’ characteristics, regional competition and policy goals?
2) What types of management of industrial estates can lead to appropriate and lasting level of quality? and
3) What type of policy instruments can enhance this process?
This part of the research is mostly qualitative. It is performed through desk research on the one hand, analyzing the management of industrial estates. On the other hand , face-to-face interviews will be performed with public and private developers and investors and relevant experts in this field.

Policy implications

Obviously, collaboration with private and public developers is needed to develop management models that correspond to the real needs of firms. This research will lead to new management models of industrial estate, the (re)definition of the role of different actors (firms, public/private developers and authorities) and new policy instruments.