Economic agglomeration in the age of Industry 4.0: developing a digital industrial cluster as a new policy tool for the digital world

Purpose This conceptual paper aims to develop the vision of a novel policy tool called the digital industrial cluster (DIC) thought for a future context shaped by digital economies and Industry 4.0. The DIC departs from the industrial cluster’s precepts and take them into the digital agglomeration phenomenon. Design/methodology/approach This research uses a discursive and theoretical approach. To create a clear picture related to the research topic, this paper reviews the literature on how industrial clusters deal with digital transformation. The review takes a particular interest in industrial clusters, information and communication technologies, Industry 4.0 and policy tools for digital agglomeration. Findings The research develops the vision of the DIC as a new policy tool, building its foundations on both industrial clusters and digital economies; furthermore, the DIC was compared with other policy tools based on digital agglomeration to understand the similarities, differences and advantages of the former. Finally, this paper discussed where the DIC could find its way toward implementation and what externalities could be expected from doing so. Practical implications This research could be useful for policymakers and cluster organizations looking to deploy policy tools that take advantage of industrial clusters and digital transformation. Besides, the theoretical foundations presented could lead researchers to empirical identification of early incarnations of the DIC. Originality/value This paper develops theoretical principles for a new policy tool that connects industrial clusters, digital agglomeration and Industry 4.0 for the first time.