【正文】 D technology. Currently, among the 510 software enterprises in Dalian, approximately 350 possess selfowned technologies that they can apply in the ?elds of?nance, electric power, highway information, marine navigation, among others. Many of these software technologieshave played a leading role in China. For example, about 80%of China’s ships use navigation systems developed by Dalianmanufacturers。886 4 2632 4044.Email address: (. Jan).Contents lists available at SciVerse ScienceDirectTechnologyTechnology in Society 34 (2020) 163–173include talent incubation, capital accumulation, technicallearning, and innovation [4–6].Sinceallthesefactorsarelinked, the structure of industrial development is extremelyplicated[7,8],andthereforedevelopingpoliciesregardingindustrial development is paratively plex [9].In recent years, China has duplicated the industrialdevelopment patterns of Taiwan in order to pursue its ownindustrydevelopment,andChinahasexhibitedastonishingdevelopment performance. For example, an industrySoftware Export Bases”。D, and technology certi?cation, tofurther accelerate technology upgrading, as detailed below.. Upgrade technology via international cooperation. Toestablish a platform for international technology cooperation and exchange, the Dalian City government hasattempted to attract foreign IT enterprises and organizations to establish their technology Ramp。D and technological innovation, improve industryperformance, promote domestic software demand, anddevelop industry scale. The Chinese government hascreated a superior environment for industrial development[43], especially with favorable and supportive policies.These policies are discussed below.. Encouragement policiesIn 2020, the Chinese government issued its “Policies fortheDevelopmentofSoftwareandICIndu。 however, SD canuse causal loops to construct a dynamic model in whichtalent, technology, and capital are considered froma dynamic perspective as a circulating ?ow. Observersthuscanbetterexplainthein?uenceoftheenvironmenton dynamic behavior and systems, and analyze futuresystem development trends.C15 Industrial development is a longterm and evolutionaryprocess. It is hampered by periodic and inevitablepersonnel changes in senior management that preventpolicymakers from acquiring insight into the evolvingstatus and problems during the period of industrialChina. Jan et al. / Technology in Society 34 (2020) 163–173 165ThedevelopmentoftheChinesesoftwareindustrydatesback to 1978, and today has achieved some notablesuccesses. For example, the industry’s sales volumeincreased from US$55 million in 1999 to US$ millionin 2020, nearly 40% annual growth. Software exportsincreased from US$$ millionin2020, representing growth of nearly 15 times over 6 years[13]. This process and scale of development is summarizedbelow.. Software industry development processChina considers the software industry not only a majorinformation technology (IT) sector, but also one soThe scope of the industryclustereffect can be organizedin the following ways: single city, region, country, or anindustry work that includes neighboring countries [36].A software industry cluster includes allied manufacturersin the same industry that form and relate to the upstreamand downstream value chain for its ?nal product, manufacturersofplementaryproducts,?nancialinstitutions,and manufacturers in related industries. In addition, thegovernment provides organizations of professionaltraining, education, information, research, and technologysupport to accelerate development of the domesticindustry. The industry cluster thus is prised of a groupof geographically neighboring and mutually correlatedenterprises and corporations within a certain ?eld. Theseenterprises are linked via substitutes, plementarities,or supplychain relationships with upstream and downstream vertical division of labor [14,23].This study aims to add further understanding byanalyzing the development structure, process, and industrial characteristics of the software industry, and to use theresearch results as the foundation for constructinga dynamic model. In the following sections, the authorsdescribe the development process, scale, and features ofthe Chinese and Dalian software industries, and the rolesplayed by the Chinese government in developing the software industry.. Software industry development process and scale indevelopment. SD is an optimal methodology for constructing a dynamic model, as it leads the direction ofthinking, focuses discussion, expands the scope ofdiscussion, and enhances the quality of policyformulation.C15 None of the recent studies of the Dalian softwareindustry have conducted a prehensive and indepthexploration of the industry using the SD methodology.Therefore, our study applied SD causal loops to collectinformation and data for discussing the cluster effect onthe development of the Dalian software industry, and toconstruct the dynamic model of the software industrydevelopment.3. Analysis of the software industry cluster in Chinafundamental and strategic to its economy that it is directlyrelated to national politics, economy, and society. Furthermore, China has prioritized the development of the ITsector by prehensively applying IT to all societal andeconomic areas, and adopting an information process tofoster industrialization capable of accelerating theadvancement of the software industry. According to China [37], the development of the software industrychain can be divided into four major phases:(1) Emerging Phase (1970s to late 1980s). In 1978, Chinaestablished the State Bureau for the Computer Industry,indicating that its software industry had of?ciallyemerged as a world power. Thereafter many relatedpanies and corporations were esta