Large Language Model Economy:An integrated sovereign economy Shaped by Multiple Institutional Logics

Abstract: Traditional institutional logic theory cannot fully explain the rise of the large language model (LLM) economy amid great-power rivalry and the emergence of intelligent logic as a new actor.Expanding the institutional logic lens to the sovereign economy,this study conceptualizes China's LLM economy as an integrated sovereign economy encompassing technological,economic,and cultural sovereignty.Its evolution reflects the economization of sovereignty,shaped by five institutional logics—state,technological,market,social,and intelligent logic.Four stages and one critical gap mark its development:conflict-driven(technological logic),symbiotic(market logic),collaborative(social logic),and competitive(hybrid logic) sovereign economies.State logic serves as the overarching driver,coupling with other foundational logics through absorption and mutual embedding.Intelligent logic,as an instrumental logic,bridges the critical gap and promotes integration and sovereignty consolidation in the competitive phase.Strengthening hybrid governance through integrative policies can help China achieve leadership in the global LLM economy.