Research On Location Study Of Knowledge-intensive Service Industry

As human society develops progressively, service industry will inevitably take place of manufacturing and then become one of driving forces and one of growth poles of socio-economy. With no doubt, knowledge-intensive service industry (KISI) is top-important in the 21st century which belongs to the era of knowledge economy. Since it is one of the advanced industries in services, KISI has a decisive role in upgrading economic structure and raising national employment rate both in developed countries and developing ones. However, services in China starts very late, develops very slow and its added value in GDP proportion is far lower than in developed countries. Also, internal structure of services in China is unreasonable as the little proportion of KISI in the whole service. Therefore, it is extremely significant to discover ways to accelerate the development of KISI in China, paths to improve the inner structure of services in China and methods to promote overall economy in China. The development of an industry credits to the enlargement of various enterprises in this industry. Location choice is considerable to enterprises'creation and expansion. Hence, the purpose of this paper comes up:location choice of KISI.This paper is divided into six parts to explain briefly factors of location choice of KISI through theoretical studies, comparative analysis, inductive and empirical research. The first part of this paper gives existing research on location choice and KISI, introduces study background and shows outline of this paper. The second one is theoretical basis which provides standards for further analysis. It defines KISI, summarizes its characteristics and classification. At the same time, it generalizes factors of location selection both in traditional and modern location theory. The third piece analyzes status quo and trend of location choice of KISI by means of comparative analysis and induction. This paper illustrates current situation of location choice of international and domestic KISI by taking United States and China for examples, and thus lead to the trend of location selection of KISI. The fourth division theoretically analyzes factors of location choice of KISI in terms of demand, supply and positive externalities. The fifth one is the case of the paper:the characteristics of location choice of KPMG in England. India and China and the factors of location choice of KPMG in China, which verifies the study of this paper. The last but not the least is the conclusion of the paper.According to analysis of this paper, KISI clearly tends to developed areas, central cities and Central Business District when it selects location. To explain this phenomenon, this paper bases on nature of enterprises:maximize profits. There are five elements from the view of supply, demand and positive externalities:supply of intellectual resources, demand of potential customers, levels of regional economy, information level and regional policies. The research of this paper will give a reference to some extent to location choice of KISI in China so as to promote progress of KISI in 21st century.