Valuing Headquarters: Analysis of the Role, Value, and Benefit of Headquarters in Global Value Chains

Companies look to locate their headquarters in centres where it is easy to gather information, and to find financing and skilled people. Firms also construct global value chains to improve performance through specialization and comparative advantage. This report explores the connections between these two concepts.

Governments around the world are keen to attract headquarters for many reasons, including the fact that they employ highly paid skilled people and use other skilled services, and that they are part of global value chains.

The number, geographic dispersion, and role of headquarters vary depending on each company’s industry, markets, and strategy. Only a small fraction of Canadian headquarters are the sort of global leaders that policy-makers value. However, a policy that specifically targets headquarters is unlikely to foster the growth of such global leaders. Policy-makers should create a solid foundation of policies that can attract all types of businesses, not just headquarters.