Government response and Talent Stickiness: What Causes the Location Transfer of High-Tech Industries

-- Based on Huawei's Location Selection in the Greater Bay Area as an Example

Abstract

Location selection of high-tech enterprises is one of the key topics in current research. The researchers discovered that Chinese Internet companies have a long tradition of positioning and development in prime cities. In the last few years, more and more Internet businesses have opted to leave the top cities. Through collecting and sorting relevant literature, this paper uses the empirical research method by Process-Tracing Method in a case study to discuss why Huawei's headquarters officially moved from Shenzhen to Dongguan. However, with The Times's development, the city's location advantage has changed. Shenzhen's policies and geographical position are no longer sufficient to attract Huawei's high-tech industry. With the development of the city, Shenzhen has brought increasing production costs for high-technology companies and industries. Compared with Shenzhen, the enterprise will develop better when the factory is relocated to Dongguan. The real estate cost of the enterprise will be significantly reduced, and talent stickiness will also be greatly improved.