Location decisions of new 'Knowledge Intensive Service Activity' firms: the rural-urban divide.

This paper analyses the variables that influence the decision to locate knowledge-intensive service activity firms (KISA firms, hereafter) in a rural or an urban area in Spain. The results indicate that the location decision of entrepreneurs choosing to start their KISA firms in a rural area is mainly driven by personal and location-related motivations, whereas the local economic framework is the main motivation of those entrepreneurs who have chosen an urban location for their KISA firms. This allows for important policy-making recommendations, but it also offers significant contributions for entrepreneurship and regional development researchers. [ABSTRACT FROM AUTHOR]