In many large cities in the developed world, X-TECH Businesses, which combine technology and existing urban industries, have emerged in recent years. The progress of digitalization of all industries has made it necessary to clarify the location principle of X-TECH Businesses and construct the basic knowledge of the new industrial location theory that goes beyond the old industrial location and ICT industrial location theories. In this context, the current study examines X-TECH Businesses in the special wards of Tokyo and clarifies the location mechanism of these businesses by analyzing the relationship between X-TECH Businesses and existing industries. In addition, this study examines the new industrial location structure that is emerging in Tokyo by drawing and analyzing the new clusters formed by the rise of X-TECH Businesses on a map. Further, the study discusses the future direction of the industrial cluster policy in accordance with the digitalization of industry. The study obtained the following results:

 1) The location of X-TECH Businesses has a strong Location-Bound and is strongly influenced by the concentration of the same industries. In addition, the location of X-TECH Businesses is strongly influenced by the concentration of other industries, such as traditional, ICT, and business supporting industries. Moreover, X-TECH Businesses emphasize proximity to higher education and research institutions and long-distance public transportation.

 2) In Tokyo, X-TECH Businesses have a unique distribution that is different from the distribution of traditional industries and ICT industries. In addition, each X-TECH Business segment is attracted to different existing business clusters. Hence, small X-TECH clusters with distinct characteristics are diversely distributed in Tokyo, resulting in the emergence of an archipelago-like industrial distribution.

 3) X-TECH clusters have a sticky nature to the region, as they enter into the crevices of existing industrial clusters and form distinctive little clusters. The X-TECH clusters serve as a bridge between traditional industry and ICT clusters and act as a “catalyst” to activate both the clusters. By supporting the formation of catalytic X-TECH clusters among existing industry clusters, one can revitalize and stabilize the overall regional economy, including traditional regional industries.