Urban economic cluster template and its dynamics of Beijing, China

Economic clusters have been a central focus of current urban and regional research, policies and practices. However, a methodology to identify and analyze policy-relevant economic cluster dynamics is still not well developed. Based on input-output (I-O) data of 1987, 1992, 1997, 2002 and 2007 of Beijing, this article presents an adapted principle component analysis for identifying the evolution of local economic cluster patterns. This research addresses the changes of economic interaction of industries with complementary and common activities over time. The identified clusters provide an insight into the reality of economic development in a diversifying urban economy: the increasing importance of services and the growing interaction between service and manufacturing industries. Our method therefore provides the analysts with a better understanding of the emergence, disappearance and development of economic clusters citywide. The results could be used to assist monitoring urban economic development and designing more practical urban economic strategies.