【正文】 ndustry development [11].Since the establishment of the Dalian Software Development Park in 1998, the output value of the software andinformation service industry there has developed rapidly,achieving a pound growth rate exceeding 50%. In1. IntroductionIndustrial development in any countrydynamic, and sustained process thathistory, culture, politics, economy, socdevelopment. The development is contrrelated policies that are implementedIn addition, state guidance of indus0160791X/$ – see front matter Crown Copyright C211doi:is a plex,eatly affected bynd the timing ofd by technologycountry [1–3].evelopment canRiver. In another example, an automobile industry clustercentered around Jiangsu, Fujian, and Guangdong hasdeveloped gradually and now has the potential to developinto an international automobile manufacturing base inChina [10–12]. Since 1978, the Chinese government haspromoted a series of development projects to serve itsdomestic softwareindustry, includingthe “Torch Program,”“Ten National Software Industry Bases,”“Six NationalSustainable citiesSystem dynamicsfrom limited environmental resources.Crown Copyright C211 2020 Published by Elsevier Ltd. All rights reserved.Software industry developmentclustering of talent, technology, and capital and their mutual reinforcement. This studyalso discusses future bottlenecks to growth in the Dalian software industry that may resultThe effect of clusters on the developmentDalian, ChinaChiouGuey Jan*, ChaoChin Chan, ChiaHungDepartment of International Business, Providence University, 200 Chung Chiarticle infoArticle history:Received 28 December 2020Accepted 5 January 2020Keywords:ChinaIndustry clusterabstractThe trend towardnology, and talent,opportunity for rapidconstruct a dynamicDalian, China softwDalian software industryjournal homepage: 2020 Published by Elsevierof the software industry inTaiwanzation has not only facilitated the circulation of capital, techhas also provided industries in developing countries with anThis study uses the system dynamics methodology tomodel to explain the phenomenon of clustering in thetry. The results indicate that the rapid development of theis the result of a growth effect generated primarily from thein SocietyLtd. All rights reserved.. Jan et al. / Technology in Society 34 (2020) 163–173164together,thisevidencedemonstratesthekeyroleplayedbyDalian in the development of the Chinese softwareindustry. However, how Dalian was able to outperform itspetitors in less than a decade deserves furtherdiscussion.This study adopts the systems perspective to analyzesoftware industry development in Dalian. In addition, weconducted an indepth analysis of industry clustering fromthreeperspectives:talent,technology,andcapital. We usedsystem dynamics (SD) causal loops to construct a dynamicmodel of the Dalian software industry development.Thereafter we adopted the sustainable cities developmentperspective for further consideration (within the restrictions of environmental conditions) of developmentbottlenecks that the Dalian software industry mayencounter in the future, and the responses of the Daliancity government.2. Industrial clusters and system dynamicsmethodologyThe term “industry cluster” is de?ned as panies ororganizations in a similar ?eld and in the same geographicregion. Companies in such clusters cooperate up and downthe supplychain while at the same time peting witheach other [14]. Companies in an industry cluster gaina petitive advantage in their industry and fosterenterprise innovations [15]. Numerous studies have foundthat industry clusters increase the petitiveness ofrelevant industries in both developed and developingcountries. For instance, a narrow belt within the northeastand eastern parts of the Midwest dominatedmanufacturing in the . until the mid1950s, with 64% ofmanufacturing employment [16]. Brazil’s shoemakingcluster in Sinos Valley held 5–% of the total volume oftheglobalshoemarketfrom1920to1990,respectively[17].The Sialkot stainless steel clusters in Pakistan, togetherwith Tuttlingen in Germany, dominate the global surgicalinstrument market [18]. The Japanese ceramic industry hasclustered in the Seto area, which now controls the international market [19]. Switzerland’s precision industry,which manufactures watches and clocks, is clustered in theJura Arc [20]. Wind musical instruments have clustered inElkhart, Indiana [16], while fashion goods have clustered innortheastcentral Italy [21]. Many of Taiwan’sworldleading industries, such as semiconductors, electronics,and TFTLCED, have clustered in Hsinchu Science Park[1,7,22,23]. Michael Porter lists 30 clustered industries,such as the . automobile industry cluster in Detroit,insurance inHartford, andaircraftequipmentand designinSeattle. Additionally, Portugal has several clusters orientedtoward exports and entrepreneurship, ranging from ornamental stones in Evora to horticulture in Faro [14].However, virtually all of the studies and research onthese industry clusters has focused mainly on regionaleconomic development, enterprise initiation, industryvalue chain, industrial works, transaction cost, technology diffusion, geography and trade, technology forecasting, industryeducation cooperation and technologicalinnovation. Furthermore, most studies have focused onquantitative research while ignoring qualitative research[24,25]. Quantitative studies have clear methodology, arereproducible and falsi?able, but may have a narrowmathematical focus, and their ?ndings are not alwayspractically relevant. Accordingly, the problems of drivingindustrial development are increasingly vast, plex, anddynamic [26–30], while key variables involved in theinfrastructureofsoftwareindustrydevelopme