Purpose This study examines how industrial digitalization fosters the development of New Quality Productive Forces (NQPF), with a particular emphasis on the role of multidimensional agglomeration. Design/methodology/approach Grounded in Marxist political economy, this study constructs an integrated analytical framework combining theoretical analysis and empirical verification. Utilizing input-output data, it develops an indicator system and employs econometric models to examine the mechanisms linking industrial digitalization, agglomeration, and productivity. Findings Industrial digitalization enhances NQPF through three channels: production optimization, labor reproduction restructuring, and industrial linkage reinforcement, with the increasing organic composition of capital serving as the central mechanism. Concurrently, industrial digitalization fosters industrial agglomeration, while both digital industry agglomeration and city-level overall economic agglomeration further accelerate the digitalization process through increasing returns to scale (IRS). Originality/value This study contributes a Marxist political economy perspective to understanding how industrial digitalization reshapes productive structures and how multidimensional agglomeration interacts with industrial digitalization. It argues that digital-led development necessitates the adjustment of production relations, requiring support through institutional reforms and industrial modernization.
Qiao et al. (Sun,) studied this question.