Regions Competitiveness Increase by Improving Conditions for Industry and Services

Abstract

The main field of study regarding location theories is to define location factors and to determine the optimal location assuming rational behaviour of economic entities. The issue is to find out what place is suitable for localization of the economic entity in order to maximize its profits in relation to its spatial orientation. In the theoretical part, location theories for industry and services with the impact of location factors are first briefly described. Mainly their development and significance in the competitive environment is discussed because the right selection of location factors can actually help to increase the competitiveness of regions. This paper analyses the actual soft regional and local location factors in individual economic sectors and focuses on the secondary and tertiary sector because the primary sector is affected by other than the examined factors. The aim of this paper is to identify factors that affect industry and are more important to the service sector. Identifying these factors can actually help to attract new businesses and to increase regions competitiveness. It is, therefore, necessary to determine the key factors that have stimulating effects on the development of individual regions.