From Protectionist to Regulator: Policy-Driven Transformation of Digital Urban Networks in China’s Online Gaming Industry

In the digital era, data-driven production organizes digital urban networks. This study explores the critical role of government policies in shaping these networks, focusing on China’s evolving policy contexts. While existing research has mainly emphasized qualitative analyses, this paper quantitatively assesses the impact of policy changes on digital urban networks, specifically through the lens of China’s online gaming industry. The study aimed to elucidate the relationship between the policy environment and digital urban networks. By examining China’s transition from protectionist to regulatory policies, this research employed a social network analysis and valued exponential random graph models (ERGMs) across two key phases: the competitive protection phase (2014–2017) and the systematic regulatory phase (2018–2022). The findings revealed a significant transformation in urban network structure, shifting from a centralized model dominated by a few core cities to a decentralized, multi-centered network. The key factors influencing this evolution include the institutional proximity and cross-regional collaborations. This study offers valuable insights into how policy shifts affect urban networks in the digital economy, contributing both theoretically and practically to future policy design.