The Impact on the Digital Economy under the Innovative and Incentive-managing Policy

Abstract

This paper mainly discusses the different managing polices’ impacts on the development of the digital economy, specifically the incentive and innovative policies. First, the study defines the definition of the digital economy based on previous studies, which are fundamentally based on artificial intelligence and digital technology. It also identifies some essential characteristics of the digital economy. In addition, it explores both the advantages and disadvantages of different management policies based on a real-life example of Hangzhou in past years. Furthermore, the paper compares and contrasts the traditional and incentive-based policies, which emphasize the importance and necessity of the latter. The research also suggests a possible balance in order to increase and motivate the developments. The findings suggest that government policies play a critical role in shaping the digital economy, such as foresting global trade, communication, and local economic development. Finally, the paper concludes with policies aiming to enhance the positive impacts on the digital economy, which can help support local merchants, markets, and entrepreneurs.