Whether and where to move? Exploring the determinants of high-tech firms’ relocation decisions in the Pearl River Delta region, China

Firm relocation is a key process in regional economic dynamics and the evolution of spatial structures. This study explores the determinants and mechanisms of high-tech firms' relocation decisions including whether firms relocate, where they relocate, and how these factors evolve across their life cycle in the Pearl River Delta region, China, by constructing a comprehensive analytical framework incorporating four dimensions—territorial and network embeddedness, location conditions, policy factors, and innovation capacity. The findings reveal that policy factors, territorial embeddedness, and innovation capacity are the most influential in relocation decisions. The choice of relocation destination is primarily driven by the firm's previous location and the differences between origin and destination sites. Furthermore, the significance of these influencing factors changes over the life cycle, reflecting a dynamic evolution of organizational routines as firms adapt to internal knowledge accumulation and external environmental shifts. This study provides valuable insights into the mechanisms of high-tech firms' relocation decisions and offers policy implications for the construction of industrial and innovation spaces that cater to the needs of high-tech firms at different stages of development.