The Influence Mechanism, Realistic Dilemma and Development Path of Digital Economy on Chinese Enterprises' Innovation

Abstract

With the progress of China's digital economy, it is significant to study whether and how the advance of digital economy can enhance the innovation ability of Chinese enterprises. This text discusses the effect of digital economy advance on companies’ innovation ability as well as its mechanism, as well as the realistic dilemma it faces, and then gives the concrete development path. This paper shows that digital economy promotes the development of innovation capability of Chinese enterprises through three aspects: reconstruction of innovation elements, improvement of external resources and reorganization of knowledge elements. On the other hand, financing is difficult and expensive, the imbalance of regional development of the digital economy, digital divide and digital poverty and other phenomena are realistic dilemmas that need to be faced and solved. In the end, the paper points out that the innovation capabilities of enterprises can be promoted by vigorously developing the digital economy, improving the digital level of enterprises, expanding the financing channels of enterprises through the digital platform, easing the financing restriction on companies, and narrowing the digital gap between metropolitan and villages through the active role of the government and society.