Headquarters Economy

Metropolitan areas with a high concentration of headquarters from diverse industries stand out as influential, dynamic economies. However, there is little discussion about the characteristics of these 'headquarters economies'. Why do some regions develop vibrant headquarters economies, whereas others do not? The answer lies in understanding the essence of headquarters - the managerial talent pool that guides and governs these companies. By investigating an exemplar headquarters economy - Minneapolis-St. Paul - this volume demonstrates that the talent pool (managers), its movement among companies and industries in a region (mobility), and the nature of its inflow and outflow from a region (migration), can create a virtuous cycle that strengthens regional companies, and draws in additional talent. Comparing the migration pattern of educated, high-earning individuals across metropolitan areas in the United States, and drawing upon a proprietary survey of thousands of headquarters employees in Minneapolis-St. Paul, this book provides supportive evidence for this dynamic. A central insight of the research is that professional managerial talent is a determinant of regional vitality that has largely been overlooked. The underlying factors of managers, mobility, and migration, here identified in the context of Minneapolis-St. Paul, exist in metropolitan areas around the world, demonstrating the scope of application of the research findings, and highlighting the benefit of focusing on these underlying factors.