Governing Digital Renewal in Mature Industrial Clusters : The DICAAAP Framework and the Energy Vaasa Case

Abstract

Industrial clusters have traditionally been understood as place-based systems whose competitiveness relies on geographic proximity, dense inter-firm networks, and strong institutional embeddedness. However, digital transformation and increasing global connectivity challenge these assumptions, particularly for mature clusters facing risks of stagnation, lock-in, and declining adaptability. While recent literature has introduced the concept of the Digital Industrial Cluster (DIC) to describe digitally mediated forms of agglomeration, empirical understanding remains limited regarding how established industrial clusters operationalise digital transformation as a strategic mechanism for renewal and cross-regional scaling. This thesis addresses this gap by developing and empirically examining the Digital Industrial Cluster Activation, Acceleration, and Adaptation Pathway (DICAAAP), a staged and governance-oriented framework explaining how mature industrial clusters transition toward functioning Digital Industrial Clusters. Integrating cluster life cycle theory, evolutionary economic geography, digital transformation research, and platform governance perspectives, the DICAAAP framework conceptualises digital transformation not as a purely technological upgrade but as a coordination and governance challenge embedded within institutional and life cycle dynamics. The study adopts a qualitative, abductive research design and applies the framework to an indepth single-case study of the Energy Vaasa cluster in Finland. Empirical material was collected through twelve semi-structured interviews with cluster management actors, industrial firms, regional policymakers, and external cluster and policy experts, complemented by relevant secondary sources. The DICAAAP stages functioned as sensitising concepts guiding analysis rather than predetermined categories. The findings indicate that Energy Vaasa benefits from strong institutional embeddedness and trust-based collaboration, yet lacks shared life-cycle diagnostics, collectively embedded digital coordination infrastructure, and institutionalised governance arrangements supporting clusterlevel digital transformation. The analysis positions the cluster between incomplete Activation and limited Acceleration, demonstrating that digital cluster renewal depends less on technological availability than on coordination capacity, staged orchestration, and institutionalisation.