The Influence of the Digital Economy on Innovation and Entrepreneurship Vitality: Base on the Perspective of International Trade

Wenrui Pi

doi:10.54097/24pcc652

Authors

Wenrui Pi

DOI:

https://doi.org/10.54097/24pcc652

Keywords:

Digital Economy; Entrepreneurship and Innovation Activity; Foreign Trade; Threshold Effect.

Abstract

In the current wave of global technological revolution and industrial transformation, the digital economy is leading innovation and change with unprecedented vitality. Based on panel data from 29 Chinese provinces, municipalities, and autonomous regions (excluding Xinjiang, Tibet, Hong Kong, and Macau) from 2012 to 2022, this paper delves into the impact of the digital economy on the vitality of mass entrepreneurship and innovation, as well as the underlying mechanisms. Empirical results show that the digital economy significantly enhances this vitality. Specifically, its promoting effect becomes more evident when foreign trade exceeds 2.736 million US dollars, indicating a nonlinear relationship. Additionally, the influence of the digital economy on mass entrepreneurship and innovation varies regionally, with eastern regions showing a more pronounced promoting effect than central and western regions. Consequently, the paper proposes the following policy recommendations: first, strengthen digital infrastructure, reduce business entry barriers, decrease information asymmetry, and boost mass entrepreneurship and innovation vitality; second, promote deep integration of the digital economy with foreign trade by building digital trade platforms to enhance enterprises' international competitiveness; and third, develop region-specific policies to encourage balanced digital economic growth and narrow regional development gaps.

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