Research On Resource-generating Path Of Headquarters Economy

The headquarters Economy, as a new economic pattern, has been growing rapidly in the past decade since the beginning of the 21 st century. With the effect of tax contribution, consumption stimulation and guiding the transformation and upgrading of economic structure, headquarters economy is of strategic importance to China’s economic and social development during the transition period. However, there are still problems such as pell-mell development, limited model and abuse of headquarters economy, resulting from insufficient understanding of the concept theoretically and in practice, preventing the healthy development of the new economic pattern.With the Advantage Integration Theory as the framework, the paper assumes that the development of headquarters economy is a dynamic process of gathering advantages. Then the paper studied the advantage selection procedure and advantage integration path, enriching the headquarters economy theory from a brand new viewpoint.After examining the existing research on headquarters economy, the papers considers most of the widely accepted definitions of headquarters economy regarding the pattern as a stable economic status, regardless of its dynamic feature. With reference to the Advantage Integration Theory, the paper brought up a new definition of headquarters economy, which perceives that headquarters economy is an economic pattern surrounding value chain division with a goal of resources optimization based on the geographical separation of the corporate and non-corporate headquarters and other functional divisions as well as a layered cycle dynamic system centered on advantage integration.According to the Advantage Integration Theory, the paper categorized the advantages needed to accumulate to develop headquarters economy into three kinds: production advantage, finance advantage and strategy advantage. In response to the question about how to gather advantages, the paper built a layered cycle dynamic model to describe the resource-generating path of headquarters economy. The layered cycle dynamic model argues that the resource-generating path can be classified into three phases: the accumulation of corporate headquarters, the accumulation and upgrading of value chain and the accumulation of advanced intelligence. There is no absolute sequence among the three phases. The resource-generating path presents a trend that has risen in a spiral.After clarifying the advantage selection procedure and resource-generating path of the headquarters economy, the paper conducted a case study of Fengtai Advanced Business Park, analyzed its advantage selection procedure and resource-generating path. Compared with City of London, the paper then examined the success and failure of Fengtai Advanced Business Park, based on which put forward several policy recommendations.