top of page
  • Writer's pictureRemo Daguati, CEO LOC AG

Magic formula for locations

Updated: Sep 16, 2023

Successful business locations offer a comprehensive package to attract or retain natural persons as well as companies and institutions. This consists of an innovative environment for converging technologies and value-driving functions, available real estate and effective promotion. If the opportunities for attracting talent and accessibility are ideal, the magic formula for locations is created.

There is a pattern in the demand behavior of the most innovative companies for locations, according to which they invest primarily in locations that combine the best possible combinations of converging technologies. Converging technologies refer to interdisciplinary collaboration in the areas of materials science (nanotechnology), life sciences (medical and biotechnology, chemistry and pharmaceuticals), information and communication technologies (ICT) and neuroscience. Business locations must credibly demonstrate where their research environment offers interdisciplinary collaboration in converging technologies and how appropriately qualified specialists can be recruited.

Value-driving functions

Internationally successful companies continually optimize their value chains. In addition to converging technologies, successful locations must therefore also demonstrate the availability of qualified specialists to process value drivers in companies. Business models can have a wide variety of drivers: innovations, optimized processes or the development of new markets. As companies operate more and more globally, their operating structures are also changing in order to be able to adapt to complex supply chains and new management models - particularly driven by increasing digitalization.


A successful economic area must provide qualified personnel and a pool of talents who use converging technologies to advantageously further develop the above-mentioned value drivers and functions within a company.

Availability of real estate sites

The availability of real estate sites or ready-to-use buildings is a key advantage in location competition and a prerequisite for success. The decision window for choosing a location for internationally active companies opens between three and six months. If this pace can be maintained, a location can gain large projects with an above-average number of highly qualified jobs.

Tax framework conditions

As part of an active promotion, tax competitiveness must also be proven - for both natural and legal persons. An efficient state with an attractive tax and contribution burden is an important “hygiene factor” for companies and individuals when choosing a location.

Effective promotion

Investment promotion organizations are increasingly required to provide the desired location information quickly, reliably and in multiple languages. The requirements for the teams, the processes and, above all, the preparation and provision of information have changed massively. Intercultural skills, multilingualism and fast processes require a location promotion organization.

1 view0 comments


bottom of page