The intricate relationship between manufacturing and service sectors forms a dynamic tapestry that reflects the evolution of the modern economyThis relationship is primarily driven by two compelling processes: the continuous integration of service-oriented labor within manufacturing workflows, significantly enhancing production efficiency, and the transformation of manufactured goods from mere commodities to value-added services embedded in various consumption scenariosThis interplay not only reshapes the economic landscape but also results in a noticeable decline in the relative share of the manufacturing sector, countered by a corresponding rise in services.

Historically, from the late 1970s to the early 2020s, industrial powerhouses such as the United States, Germany, and Japan have seen a reduction of over ten percentage points in the contribution of manufacturing to their GDP

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This decline can be attributed to external pressures leading to the relocation of manufacturing jobs, yet it also signals an inherent trend of convergence between manufacturing and services that is often overlookedIn contrast, China's manufacturing sector has burgeoned, increasing its global share of manufacturing value added from 8.6% in 2004 to around 30% by 2021, illustrating a remarkable shiftHowever, this growth comes alongside a dip in the share of manufacturing value added to GDP, which decreased from 32.45% in 2004 to 27.44% in 2021, further demonstrating how the two sectors are increasingly intertwined.

The fusion of advanced manufacturing and modern service industries does not merely represent a physical amalgamation; it embodies a synergistic coupling founded on specific technological innovationsThroughout history, pivotal technological advances have fostered this integration at various stages

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Particularly since the 1950s, advancements in information technology have paved the way for concepts such as smart factories, industrial internet, and flexible manufacturingThese innovations have catalyzed the rapid evolution of connectivity technologies such as 5G and 6G, alongside the rise of artificial intelligenceThese technologies hold the promise of real-time, large-scale industrial data transmission, paving the way for the creation of "digital twins" that mirror physical production activitiesSuch developments could assist in integrating creative processes across manufacturing stagesFor instance, without incurring extra costs, businesses could tap into expert communities to conduct synchronous or asynchronous design validations, utilizing AI to optimize manufacturing processes and logistics networksThis shift suggests that the manufacturing segment's traditional role will gradually diminish in proportion, steering towards full automation while enhancing the prominence of creative services.

Furthermore, as this merger deepens, it instigates profound transformations within industry structures necessitating a close alignment of business models and spatial strategies

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The nature of product transactions is evolving from single-instance sales to a model reliant on hardware-software combinations within rental frameworks, emphasizing service-for-cost recovery strategiesConsequently, enterprise evolution towards platform-based and ecosystem-oriented approaches becomes imperativeThis transformation, while seemingly straightforward, presents fresh challenges to operational capacities and socioeconomic dynamics that underpin them, while simultaneously opening doors to significant opportunitiesTo navigate this landscape, industries must undertake extensive upfront investments in new infrastructure while adhering to the uncertain cost recovery cycles that accompany such innovations.

The traditional paradigms of developing manufacturing clusters in isolated environments—parks and bases—are now being challenged, providing a framework that supports the cross-region and even virtual resource allocation of human, logistical, and financial flows

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In conjunction with these changes, the relationship between industry and urbanism is undergoing a critical reevaluationThe former approach—prioritizing production leading to urban development—shifts towards a more integrated model that emphasizes human-centric design, allowing urban environments to evolve alongside the population’s needs to create harmonious and efficient spaces for the future.

Underpinning the intricate fusion of advanced manufacturing and modern services are innovations across technology, business models, and spatial configurations, all of which call for accompanying institutional innovationsTo foster long-term development, a robust mechanism must be established to instill confidence and stability in expectations, while also clearly defining and protecting property rights and facilitating intricate transactions involving intangible assets and knowledge products

Moreover, in ensuring cohesive policy frameworks that accelerate the integration of these sectors, vigilance against the phenomenon known as the 'disease of large enterprises' is essentialThis ailment is characterized by productivity gains among dominant firms at the expense of smaller counterparts, as production factors increasingly concentrate around elite enterprises, thereby deteriorating conditions for non-dominant playersThis scenario ultimately undermines the vitality of industry and stifles high-quality growth.

Addressing this issue—a formidable challenge—requires superior capabilities to identify, balance, and implement policy measures that both leverage the advantages of large-scale enterprises and prevent disconnections in productivity and income levels among enterprises of varying sizesMoreover, breathing life into nascent businesses is crucial for nurturing new productive forces and carving pathways for innovative growth