ncentives for businesses, proximity to large markets, inadequate enterprise promotion and support policies, bureaucracy, high business set-up costs, and lack of support. Soft factors are: industrial traditions, diversified access to a qualified workforce, low level social confidence, and the fact that scientific and research institutions usually prefer teaching to research and development activities. Hard exogenous factors include a developed technical infrastructure, proximity to absorptive domestic and foreign markets, special economic zones, the existence of big enterprises (vendors, customers), attractive real estate prices, poor transport infrastructure, the unclear legal status of real estate and land, a lack of spatial development plans, and bureaucracy. While soft factors involve the active engagement of local governments to attract foreign capital, culture, and industrial traditions, a lack of cooperation between enterprises, scientific and research and development institutions, and distrust of external investors, particularly in regard to foreign capital.