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This article attempts to explain spatial diffusion of Japanese enterprises within the Federal Republic of Germany as a spatial process following the shift of regional economic power from the northern to the southern part. Hitherto studies have only gone as far as the indication of a concentration of Japanese enterprises in Dusseldorf. But, from the viewpoint of a dynamic approach, this does not seem to fit into today's existing conditions. In fact Japanese enterprises have already entered a stage of diffusion. The innovation centers of the hierarchical diffusion are Hamburg, Dusseldorf, Frankfurt, Stuttgart and Munchen. From these centers , a wavelike diffusion into the surrounding areas took place according to the various diffusion centers in different phases. The hierarchical diffusion can be seen as being carried out from the trade and service sector and with a wavelike motion from the production sector . The main diffusion direction was laid to the south. For the interpretation of the diffusion process described , several hypotheses have been derived and examined with the aid of a non-linear multiple regression model of the gravitation type. The results supported the hypothesis of a hierarchical wavelike diffusion and three determinants explaining the mechanism of the diffusion process were significantly discovered; first the information network of Japanese enterprises, established by the Japanese Chamber of Commerce and Industry in Dusseldorf; second, the spatial distance from Dusseldorf; third. the centrality in the German urban system The locational behavior of Japanese enterprises has been influenced, on the one hand , by the altering of the west German urban system, on the other hand , by the changing firm structure itself. For the three sectors, trade, other services and production , it is obtained that each sector has a characteristic location pattern, which received certain alterations during the investigated period. The results suggest that, in an advanced stage of diffusion, the presence of foreign enterprises can be used as a simple indicator for alterations of economic growth in an urban

Spatial Diffusion of Japanese Firms in West Germany and West Berlin from 1955 to 1989