Regional Policy and Management Jobs: The Locational Behaviour of Corporate Headquarters in West Germany

Abstract

Since the mid 1970s, there have been attempts in West German regional policy to relocate jobs in the expanding service sector to the assisted areas. Based on the locational behaviour of the headquarters of industrial companies, the possibility and usefulness of a decentralisation of management jobs is examined. In view of the location requirements and the mobility of those tertiary functions requiring highly qualified personnel, an increasing importance accruing to the leading locations for headquarters can be expected. The financial incentives to relocate have proven too weak. A policy of forced decentralisation, however, would not be useful, because of the already decentralised location structure in West Germany when compared internationally. A further decentralisation would detract from the function of the leading locations as national growth centres and would endanger their international competitiveness. A policy to activate the endogenous development potential of disadvantaged regions is therefore more suitable than long-distance relocations of service industries to the assisted areas.