On the Theoretical Framework of Digital Industrial Clusters: Connotation, Driver, Model and Path

【Authors】

WANG Xuhui, ZHANG Qilin, LU Xingtong & ZHANG Jianjun

【WorkUnit】

Dongbei University of Finance and Economics, 116025.

【Abstract】

The Report to the 20th National Congress of the Communist Party of China identifies Digital Industrial Clusters （DICs） with international competitiveness as a cornerstone of a modern industrial system. However, the lack of systematic research on their fundamental aspects has hindered both academic understanding and their development on the ground, making it difficult to provide effective policy guidance for building a modern industrial system. 
This study addresses this gap by systematically defining the theoretical connotation, endogenous driver, cluster model and development path of DICs. The DIC is defined as an agglomeration of interconnected enterprises in specific fields and are highly concentrated on the Internet platform. Further analysis shows that the demand-side economies of scale are the endogenous driver of cluster formation. There are four cluster models: shared cluster, collaborative cluster, expanded cluster, and symbiotic cluster. Their development path involves a complex process: from platform-driven formation, to market-driven expansion, and then scenario-driven integration. This paper also proposes policy recommendations and possible directions for future research. 
This study contributes to the existing DIC literature in the following aspects. First, unlike most prior studies that incorporate the geographical agglomeration of digital industrialization, the geographical agglomeration of conventional industries going through digitization, and the agglomeration of these industries in virtual space, this study narrows DICs as the agglomeration of conventional industries going through digitization in virtual space. This narrowing not only helps to uncover research objects with the most distinctive digital economy characteristics but also filters out phenomena explainable by traditional industrial cluster theories, thereby providing an effective logical starting point for the study of DICs and enabling the study to conclude distinctly from traditional industrial cluster theories. Second, unlike existing research that focuses on the differences between DICs and traditional industrial clusters, and then constructs DIC theories by improving traditional industrial cluster theories, this paper constructs a novel DIC theory based on the DIC development practice and definition, establishing its legitimacy. Third, unlike most prior studies that use inductive logic to extract partial propositions of DICs, this study employs deductive logic to construct the theoretical system of DICs, elucidating its underlying logic and holistic structure.
This study has important policy recommendations. In particular, the government should prioritize offline clusters of conventional industries going through digitization rather than offline clusters of digital industrialization, thereby developing digital industrial clusters with comparative advantages. Moreover, the free flow of factors and large Internet platforms are necessary to build DICs. In addition, differentiated management is important to guarantee the rapid development and structural optimization of DICs.

JEL: L52, L81, O14

【KeyWords】

Digital Industrial Cluster, Internet Platform, Endogenous Driver, Cluster Model