【正文】 blished,including China Computer Service Co. (predecessor ofChina Software), China Computer Software Co., ChinaComputer System Integration Co., China ComputerSystemIntegrationCompany,etc.,layingthefoundationfor the longterm development of the Chinese softwareindustry.(2) Initial Phase (early 1980s to late 1980s). During the early1980s, China began pursuing bined scienti?c andeconomic research, and with the acceleration ofeconomic openness, numerous software industryassociations appeared. Through the late 1980s, theChinese software industry catered to market andcustomer demand, and then made major strides intoeconomic reform.(3) Entry Phase (early 1990s to early 2020s).Duringtheearly1990s, to maximize cluster advantages, China modeledits industry development after that of Taiwan. It beganestablishing software parks, and implementing clusterdevelopment. A series of major construction projectswere executed, followed by related software applications. In 2020, the State Council of China issued the No.18 Document, “Notice on Promoting the Continuousand Healthy Development of the Real Estate Market”after which the Chinese software industry realized animproved environment and larger development space.The Chinese software industry had entered the fullscale development phase.(4) Developing Phase (2020 to present). Since 2020, China’ssoftware enterprises have entered the work software phase in which major Inter and softwarework sales and operations emerged, and softwareexports gradually increased. The number of work?rms sharply increased, and they introduced worksoftware that attracted widespread approval. Additionally, with stock market growth, many Chinesesoftware ?rms have sought listing on the . stockmarkets, thus attracting overseas investment. Since2020, numerous multinational panies, includingIBM, Microsoft,andOracle,have investedin theChinesesoftware market to reduce their operating costs,customize their products and be close to the Chinesemarket. The huge Chinese software market has beea key market and a focal point of petition amongTo assess the current status of the software industry inDalian, some key variables need to be noted. Numerousinternational studies have identi?ed many causes of?ed the following critical factors that contribute to industrial development:. Jan et al. / Technology in Society 34 (2020) 163–173166C15 local governments encourage public and private organizations to incubate and recruit talent to providesuf?cient manpowerC15 local governments initially and actively invest in infrastructure, and adopt various preferential policies toencourage enterprises to invest capital (generalizedindustry cluster formation worldwide, including regionaland original demand and supply for market structures,innovation by panies, and chance events [14,15]. Theseclustering factors generate virtuous cycles when they aresupported by local governments and private enterprises,thus expanding the industry’s market scale, in turn furtherexpanding the industry cluster [14,38–41].This study analyzed some of the academic literature onindustry clusters [14–23,38–41], and subsequently identirelated global software panies and manufacturers.Due to market demand promoting supply in the software industry, the Chinese government has strengthened its infrastructure to facilitate active cooperationwith in?owing foreign capital and the convergence ofglobal talent. The Chinese software industry hasentered a phase of rapid development.. Software industry scale in ChinaSince 2020, the Chinese software industry has developed rapidly. Then the market size was just US$million。D and innovation, talent incubation, and investment from domestic and foreign enterprises. Among thesefactors, talent incubation and key technology developmentrequire time to yield results. Additionally, along with thelinked causal relationships that exist between variables,dynamic and plex phenomenon cannot be clearlyexplained using a single perspective or a single time point[32–35].This study adopted elements of the system dynamicsmethodology to examine the primary reasons why theDalian software industry developed so successfully. Theseelements are:C15 In the process of industrial development, plexrelationships exist between talent, technology, andcapital. However, the analytical methods applied toconventional industries are unable to directly expressthe causal relationships existing among these variables.In contrast, SD causal loops are suitable for analyzingsuch plex structures. An analysis of the causal loopsexplains the impact on the system of linked causalrelationships between variables and the external environment in the process of industrial development.C15 As a long and timeconsuming process, one of the keycharacteristics of industrial development is the changethat follows a time path and shows a dynamic transitivestatus. Industrial development cannot use a single timepoint to understand industrial status。 eight foreign banks and six foreign ?nancial institutions also have branches in Dalian. In 2020, a joint ventureconstruction project between Dalian Software Park andSingapore Ascendas Group was undertaken to establish the35 ha Dalian Ascendas Software Park, with the two partiesproviding 50% of the total US$63 million investment.. Continued investment of foreign capital. Japan ruledDalianforfourdecades,fromtheendof theRussoJapaneseWar in 1905 to the end of World War II in 1945. Due to thegeographical proximity of Dalian and Japan, mutualexchanges are frequent, and markets in Dalian even acceptJapanese currency, leading to Dalian being known as “LittleJapan.” Presently, more than 100,000 Dalian citizens speak?uent Japanese, and over 2020 Japanese panies havemigrated their technology developmen