Analysis Of Headquarter-based Economy In Chongqing

As a new form of regional economy in central cities, headquarter-based economy comes into being as a result of the reallocation of resources due to the different conditions between different regions. In form, headquarter-based economy displays itself as the cluster industries of advanced level. In real economic activities, however, it means that through creating favorable environment, a certain region can attract much more multinational companies, large-scale enterprises from outside, governments of all levels to establish branch offices or R&D centers, with which a more reasonable division of chain value can be constructed. A region with headquarter-based economy usually enjoys location advantages and can attract innovation factors such as talent, capital and information. Undoubtedly, headquarter-based economy can help a region produce large amount of tax income, create more opportunities, and enhance its competitive force. As a case study, this paper first analyses the advantages and significance of developing headquarter-based economy in Chongqing and the influences on its industries upgrading; then it suggests, in order to develop and upgrade the local industries more effectively, what strategic measures and protection policies need to be taken in developing headquarter-based economy.