Unveiling industrial functional networks in megacity regions: A spatial and network-based analysis of agglomeration economies

Source abstract

Urban areas function as complex systems that support a diverse range of socioeconomic activities, with industries clustering in specific regions according to different sectors. Although many studies describe and map the spatial distribution of industrial activities, few examine the complex interactions between industrial functions. This study presents a data-driven perspective to investigate the connections among different industrial functions, focusing on how their co-location and sectoral relatedness indicate relationships. Functional keywords are extracted from the names of Points of Interest (POIs) to construct an industrial functional network. In this network, nodes represent keywords, and edges measure spatial co-occurrence within clusters and functional relatedness between industrial sectors. The network’s structure is analyzed using selected metrics, and groups of industrial functions are identified through a community detection algorithm, along with their spatial distribution. Using the Chinese Greater Bay Area (GBA) as the study area, keywords with high degree and strength such as electronic and food, are identified as central to key manufacturing processes and closely connected to local industrial activities. Additionally, the strength of agglomeration economies is linked to geographic externalities. Industrial activities with strong connections to diverse sectors are mainly located in central areas of major cities. The findings provide practical insights into spatial differences between specialized and diversified industrial economies, highlighting regional inequalities.