Migration of Electronics Production. Optimisation of Technology or Labour Costs?

Electronics industry is one of the most dynamic industrial activities in the world. Dynamism is expressed by new products and, for our concern, especially by constant relocation and transfer of production. New factories and research laboratories are opened and old ones closed every week. Foreign investments and transfer of production are not new events. However, their scope and volume are unprecedented in historical terms. In this paper we analyse the location patterns. We analyse the factory relocation both on local (Estonian) and global level. Based on Johann von Th¸nen model we construct also a model for explaining the location. We try to base on technical and technological argumentation rather than on social factors.