Straw-based panels,which are made from the agricultural residuals,have been considered as alternative and supplemental products to the increasing market demand for wood-based panels in China.However,slow infrastructure development and inadequate market information have resulted in the increase of manufacturing costs.These high costs have made straw-based panels less attractive and competitive in the panel market.To solve these problems,the authors proposed to establish virtual industry clusters for the industry.This study described the idea and concept of virtual industry clusters and how to organize these clusters.