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