The rapid ascent of the Esports industry, characterized by its unique blend of technology, entertainment, and sports, has positioned it as a significant sector within the global digital economy. This paper explores the intricate dynamics of the esports industry within the context of the Hainan Free Trade Port (FTP), a pioneering initiative by China aimed at fostering economic liberalization and integration into the global market. By examining the structural components and innovation mechanisms of the esports industry chain, this study highlights the transformative impact of Hainan FTP’s policy framework on fostering an environment conducive to industry growth and technological advancement. Through a comprehensive analysis of upstream game development, midstream event organization and broadcasting, and downstream market consumption, this research uncovers the challenges and opportunities facing the esports sector in Hainan. It delves into the policy impacts, technological frontiers, and innovative business models shaping the industry, supported by case studies of significant initiatives within the FTP. The study employs a mixed-methods approach, integrating qualitative interviews and case study analysis with quantitative data evaluation, to provide a holistic understanding of the Esports industry’s evolution in Hainan. The findings suggest that Hainan’s strategic policies and investments in the esports industry have the potential to catalyze significant innovations and position the region as a global Esports hub. The paper concludes with strategic implications for policymakers, industry stakeholders, and recommendations for future research, aiming to contribute to the broader discourse on the economic geography of digital industries and innovation ecosystems.

Kun Qian, Xiaolan Deng, Yue Deng, Hong Pan. Innovative Dynamics of the Esports Industry within Hainan’s Free Trade Port Ecosystem. Academic Journal of Business & Management (2024) Vol. 6, Issue 2: 119-130. https://doi.org/10.25236/AJBM.2024.060218.

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