When innovation replaces cost as a firm's focus for location decisions, the presence of other state-of-the-art firms is a plus, not a negative, for the firm's competitiveness.

Question

Quizplus · Accepted Answer

When a firm is focused on innovation instead of cost, the presence of other state-of-the-art firms in the same location can help create a competitive environment, which can encourage creativity and idea exchange. This can ultimately benefit the firm's competitiveness.

When Innovation Replaces Cost as a Firm's Focus for Location