["Social Science Quarterly, EarlyView. ", "\nAbstract\n\nObjective\nDesignated by the Japanese National Government, the Tokyo Metropolitan Government established the Special Zone for Asian Headquarters in 2011. This study analyses the impact of this Special Zone Policy on the attraction of foreign companies.\n\n\nMethods\nThe data on the number of foreign companies in Tokyo is used, and a difference‐in‐differences estimation model is adopted.\n\n\nResults\nThe empirical results indicate that there has been a significant positive impact, considering an increase in the concentration of foreign companies in the designated areas of the Special Zone.\n\n\nConclusion\nFrom the perspective of area agglomeration, the policy has a good process as first step. Therefore, the Tokyo Metropolitan Government should consider implementing a policy to increase the communication among Japanese and foreign companies as next step, while taking the agglomeration profit into account.\n\n"]