Abstract：From the 30's of the19th century to the 30's of the 20th century, with the fast development of the social productive forces and the close relation of the local economies, economists proposed various position theories, and the demand cone put forward in the position theory by economist Losch is noteworthy. In this paper, the beer demand cone is generalized into various kinds of demand cone of products to obtain the concept, the model and the influence factor of the generalized demand cone, where the technical innovation promotes "the congenetic growth" and "the heterogenous growth" of the demand cone . In the course of its growth, the technological innovation makes the cycle of the life of product shorter and shorter, with the products of old generation being replaced constantly by products of new generation. Three stages of the product cycle put forward by Veron are incorporated into the generalized demand cone model. As the demand of cone grows, the base of production spreads from the primitive one.In the process of the economic integration in the world, it serves as a theoretical model for the strategic shifts and the spatial reorganization of global industries.
2007, Vol. 25 
