Analysis on the Internal Mechanism and Implementation Path of

Digital Economy to Promote the Development of High Quality

Industry

Yong Cao

School of Economics and Management, Jiangxi Univeristy of Science and Technolgoy, Ganzhou, China

Keywords: Digital Economy, High-quality Industrial Development, The Mechanism, Implementation of the Path.

Abstract: At present, the digital economy is expanding from the consumption field to the production field, and the

integrated development has given birth to a series of new business forms and new models, which has

become an important economic growth point. The internal mechanism of digital economy boosting high-

quality industrial development is mainly as follows: data elements stimulate new driving forces for

industrial development; digital economy promotes industrial optimization and upgrading and technological

innovation; digital economy reduces transaction costs and improves the efficiency of resource allocation.

Based on the internal mechanism, this paper starts from the reality of the development of digital economy,

and puts forward the main implementation path of digital economy to promote the high-quality development

of industry.

1 INTRODUCTION

Digital economy is a new economic form following

agricultural economy and industrial economy. It

takes data resources as an important factor of

production, modern information network as the main

carrier, information and communication technology

integration application and total factor digital

transformation as an important driving force. At

present, the digital economy, as a new economic

growth point, is accelerating the integration with the

real economy, giving birth to a series of new

business forms and new models, which plays an

important role in promoting the high-quality

development of the industry. It is of great

significance for promoting the transformation and

upgrading of the real economy, promoting the high-

quality development of the industry, and enhancing

the national competitiveness to study the internal

mechanism of the digital economy to boost the high-

quality development of the industry and find the

corresponding implementation path.

2 THE REALISTIC

REPRESENTATION OF THE

DIGITAL ECONOMY

BOOSTING THE HIGH-

QUALITY DEVELOPMENT OF

THE INDUSTRY

2.1 Digital Economy Has Become a

New Economic Growth Point

With the support of industrial policies and the

application of advanced information technology, the

digital economy system has been growing steadily.

In the past two decades, the scale of China's digital

economy has grown exponentially, from US $43

billion in 1996 to $5.5 trillion in 2019, and the

output value of the digital economy has increased by

more than 120 times. Especially in recent years, with

the rapid layout and development of the Internet of

Things, big data and 5G technologies, the scale of

China's digital economy has shown steady growth.

As can be seen from Table 1, both the scale of

industrial digitalization and the scale of digital

industrialization are growing at an accelerating pace.

In 2019, the scale of digital industry exceeded $1

Cao, Y.

Analysis on the Internal Mechanism and Implementation Path of Digital Economy to Promote the Development of High Quality Industry.

DOI: 10.5220/0010827900003168

In Proceedings of the 1st International Conference on Finance, Information Technology and Management (ICFITM 2021), pages 5-10

ISBN: 978-989-758-576-0

 2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reser ved

trillion for the first time, becoming an important part

of national economic growth.The digital economy

promotes the growth of national economy, which is

not only reflected in the industrialization process of

digital information, but also reflected in the driving

effect of digitalization on the transformation and

upgrading of industrial structure. According to IDC,

China's digital economy will reach $8.5 trillion in

2021, accounting for about 55 percent of GDP.

Table 1 ： China's Industrial Digitization and Digital

Industrialization Scale from 2014 to 2019 ($100 million)

2014 2015 2016 2017 2018 2019

Digital scale of

industry

18431 21360 26810 32416 38367 44336

Digital

industrialization

scale

6494 7368 8011 9486 9887 10929

Data source: China Academy of Information and

Communications Technology

2.2 Accelerating the Integration of the

Digital Economy with the Real

Economy

In recent years, the rapid development of digital

information technology and its popularization and

application in various industries have improved the

operation and management efficiency of enterprises,

expanded the new ecological operation mode, and

accelerated the process of digital development of

enterprises. The integration of digital economy and

real economy has achieved certain results in

different industries. As shown in Table 2, the degree

of integration of digital economy in China's three

major industries has maintained a steady growth in

recent years, with the highest degree of integration

with the tertiary industry, followed by the secondary

industry and the lowest degree of integration with

the primary industry. This is consistent with the

current growth trend of GDP of various industries in

China.On the one hand, the digital economy

accelerates the application of new technology in the

industry, constantly innovates the development

mode of modern service industry, promotes the

development of manufacturing industry towards

intellectualization, and speeds up the development

level of modern agriculture. On the other hand, the

integration of digital economy and real economy has

broken the original information and technical

barriers, optimized the traditional industries in an

all-round, multi-angle and whole chain, extended the

industrial chain, and realized the transformation and

optimization of the industrial structure.

Table 2: The degree of integration of digital economy

among China's three major industries from 2016 to 2019

2016 2017 2018 2019

The first industry 6.2% 6.5% 7.3% 8.2%

The second industry 16.8% 17.2% 18.3% 19.5%

The third industry 29.6% 32.6% 35.9% 37.8%

Source: China Academy of Information and

Communications Technology

2.3 The Digital Economy Has Spawned

New Forms and Models of Business

In recent years, the continuous improvement and

development of digital technology and the

increasing maturity of basic industries have

powerfully promoted the process of industrial

digitalization to advance further. In terms of

industrial structure, the integration of digital

economy with agriculture, manufacturing and

service industry has accelerated, eliminating many

traditional and backward industries and industrial

models and giving birth to a large number of new

industries and new models. In the field of smart

agriculture, by applying Internet of Things

technology, audio and video technology, 3S

technology to traditional agriculture, visual remote

diagnosis, remote control and disaster warning can

be realized in agriculture. In the field of intelligent

manufacturing, large manufacturing enterprises rely

on artificial intelligence and big data analysis

technology to achieve fully automated production of

workshop processes, from labor-intensive to

technology-intensive. In the field of smart home,

many home furnishing manufacturers will include

home butler, voice assistant and other services into

the scope of the new generation of decoration

design, to explore a more humanized and

comfortable development model. In the field of

intelligent medical care, more and more medical

products that assist health management and disease

prediction liberate doctors from the busy

consultation and return, and contribute to the

development of the new medical industry.

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3 RESEARCH ON THE

MECHANISM OF DIGITAL

ECONOMY BOOSTING

HIGH-QUALITY INDUSTRIAL

DEVELOPMENT

Digital economy mechanism to promote the

development of industry, high quality performance

for the data elements in the digital economy to

stimulate new momentum of industrial development,

digital information platform can reduce the

transaction costs, improve the efficiency of the

allocation of resources, the digital economy to

promote industrial upgrading and technological

innovation, and promote the development of high

quality of industry.

3.1 Digital Economy -- Data Elements

Stimulate New Driving Forces for

Industrial Development --

Promoting High-quality Industrial

Development

With the advancement of industrial digitization, data

and information elements are playing an

increasingly important role in enterprise governance

and business decision-making. In October 2019, the

Fourth Plenary Session of the 19th CPC Central

Committee identified "data" as a factor of

production for the first time. As the core factor of

production of the digital economy, data has become

an important driving force for the transformation of

the digital economy.Different from traditional

production factors such as capital, land and labor,

data factor stimulates new driving forces of the

industry with their strong sharing, expansion and

high efficiency, thus promoting high-quality

development of the industry. Specifically shown in:

(1) sharing: in the era of digital economy, enterprises

through access to the information technology

platform stored in the massive data resources, on the

one hand, can eliminate industry barriers and reduce

the enterprise risk caused by information

uncertainty;On the other hand, the resource docking

brought by data sharing can concentrate the

advantages of all parties, realize the optimization of

innovation subjects within the industry and the

integration of innovation and development between

industries, and stimulate new driving forces of the

industry.(2) expansion: the input of data elements,

can help enterprises from the budget, financing,

procurement, production, pricing, sales and other

production and operation links to expand the

existing information channels, in the fierce market

competition to seek high-quality development. (3)

High efficiency: Compared with capital and human

resources in the industrial era, digital resources can

greatly improve the efficiency of resource use by

virtue of powerful computer network and big data

analysis carrier. In the process of promoting

industrial development, higher spillover effect can

be generated and more kinetic energy can be

released.

3.2 Digital Economy -- Reduces

Transaction Costs, Improve the

Efficiency of Resource Allocation --

Promote High-quality Industrial

Development

Digital economy, with the help of Internet, cloud

computing and big data technology, can deal with

the activities of various links in the complex

industrial chain, greatly improving the efficiency of

operation and management and reducing the

probability of errors. Based on the information

technology platform, the activities of production

factors related to enterprises, such as searching,

purchasing, transportation, tracking, storage and use,

are all carried out in a unified information platform.

On the one hand, information asymmetry is reduced

and transaction costs such as information cost,

negotiation cost and time cost are reduced. On the

other hand, it improves the efficiency of business

and data processing, which is conducive to the

reasonable formulation of industrial policies by

government departments and the rapid strategic

decisions by enterprise management to promote the

high-quality development of the industry. In addition,

the high efficiency brought by the digital economy

can reduce the redundancy of industry assets, clarify

the relevant business activities of the industrial chain,

integrate the existing resources, extend the industrial

chain, and achieve the improvement of the

efficiency of resource allocation.

3.3 Digital Economy -- Promoting

Industrial Optimization and

Upgrading and Technological

Innovation -- Promoting

High-quality Industrial

Development

The emergence of digital economy cannot be

separated from the support of information technology,

Analysis on the Internal Mechanism and Implementation Path of Digital Economy to Promote the Development of High Quality Industry

but the development of digital economy also

promotes the iterative upgrading of information

technology and the continuous generation of new

technologies. The rapid development of 5G network,

big data analysis and artificial intelligence

technology has pushed the industry toward intelligent

and digital development. Currently facing the profit

level is low in many industries, lack of momentum

from the macroscopic level, is due to the vague

management pattern, the unreasonable industrial

structure is difficult to meet the increasingly

sophisticated consumer market, traditional enterprise

needs to upgrade the industrial structure, and the

development of the digital economy to upgrade

industrial structure has brought the new technology,

new application, new platform and a new direction.

First, network communication and data sharing in the

digital economy strengthen the connection between

different industries and promote the development of

the "sharing economy". Second, the new combination

of production factors in the digital economy brings

more profit growth points for enterprises and

promotes the optimization and upgrading of

industrial structure. Thirdly, the retrospective

feedback mechanism of user experience under the

digital economy can accurately locate the market

demand, adjust the industrial structure according to

the personalized and diversified needs of users, and

release more value signals to users and the market.

From the micro level, the growth of corporate

profits mainly comes from the improvement of

efficiency, which cannot be achieved without

technological innovation. New technology is an

important driving force to promote high-quality

industrial development, and is also the vitality of

enterprise development. The digital economy is

based on the continuous improvement of

information technology, and at the same time, it is

constantly expanding new industrial development

models and giving birth to new technologies.

4 THE IMPLEMENTATION

PATH OF DIGITAL ECONOMY

TO BOOST THE

HIGH-QUALITY

DEVELOPMENT OF CHINA'S

INDUSTRIES

4.1 Improve Digital Infrastructure and

Consolidate the Foundation for

High-quality Industrial

Development

In order to ensure the stable and orderly

development of high-quality industries driven by the

new drivers of the digital economy, we must

strengthen the infrastructure on which the digital

economy depends. First, speed up the construction

of 5G base stations and Internet of Things

engineering facilities, optimize the national network

layout, and improve network transmission efficiency;

We will coordinate the establishment of cloud

computing and big data sharing service platforms,

promote the integration, optimization and

technological upgrading of existing data platforms,

and realize the interconnection and data sharing of

the whole industrial chain as soon as possible.

Second, to speed up the construction of a new

generation of digital economy comprehensive

information service system, the enterprise budget

management, business management, product

management, quality management and performance

management into the unified digital information

service platform, help the layout of the whole

industrial chain, improve the intelligent level of the

whole industry operation. Finally, we should

accelerate the establishment of unified data

management standards, strengthen the security

protection of economic data, and promote the safe

and orderly integration of various industrial

resources in different fields.

4.2 Accelerate Technological

Innovation and Tap the High-value

End of the Industrial Chain

The rapid development of digital information field

drives the transformative development of digital

economy. At present, with the help of intelligent

digital platform, the digital economy is accelerating

the integration with the real economy. However,

limited by the core technology breakthroughs in key

areas, China has failed to realize the comprehensive

ICFITM 2021 - INTERNATIONAL CONFERENCE ON FINANCE, INFORMATION TECHNOLOGY AND MANAGEMENT

extension of the industrial chain, and the level of

digital industrialization is still low. Through

technological innovation, accelerating the

breakthrough of core technologies such as cloud

computing, big data and artificial intelligence, and

promoting the integrated development of blockchain

and other core technologies, the industrial chain can

be extended and developed toward the high value

end. In addition, from the enterprise level,

innovation drives development, and technological

innovation is the vitality of enterprise development.

Technological innovation based on digital platform

is helpful for enterprises to tap the diversified

demands of the market and find new and high-value

profit growth points. As the basic unit of the

industry, the innovation and growth of enterprises

can drive the optimization and upgrading of the

relevant industrial structure, and then promote the

high-quality development of the industry.

4.3 Deepening the Integration of the

Digital Economy and the Real

Economy, and Improving the

Industrial Structure

At present, the tertiary industry with a higher degree

of integration between digital economy and real

economy accounts for more than half of China's

GDP, and has spawned a series of new business

forms such as smart finance, smart home, and smart

medical care, indicating that the integration of

digital economy and real economy has a positive

impact on the optimization of industrial structure

and the high-quality development of the industry.To

promote the deep integration of digital economy and

real economy, first of all, it is necessary to formulate

digital priority development strategy, give full play

to the diffusion effect of digital economy on

economic development, especially in the low degree

of integration of the first and second industries, we

should vigorously promote the development of smart

agriculture and intelligent manufacturing, accelerate

the upgrading of traditional industrial structure.In

addition, different regions should make

corresponding development strategies according to

their own actual development conditions, timely

eliminate backward and inefficient infrastructure and

development mode, establish information, digital

and intelligent industrial mode, and accelerate

industrial digital transformation.

4.4 Cultivating Innovative Talents for

the Digital Economy and

Unleashing the Vitality of

Industrial Development

Digital economy under the background of

optimization and upgrading of industrial structure is

dependent on the technological progress and

scientific and technological innovation, in the

Internet of things, big data, and the digital economy

related fields such as artificial intelligence,

technology upgrading needs a lot of research and

development of innovative talents, and in terms of

digital information management platform, digital

management also requires a lot of application

management personnel. In addition, the digital

economy constantly promotes the development of

new industries, which puts forward deeper

requirements for human resources. Cultivating

innovative digital economy talents, on the one hand,

we should promote the education reform under the

era of digital economy, and focus on training

scientific and technological research and

development personnel and application management

personnel to adapt to the digital economy. On the

other hand, it is necessary to strengthen personnel

and technical exchanges in various regions,

industries and fields, strengthen technical training

for enterprises, expand talent training channels, and

strive to cultivate compound talents suitable for the

digital economy industry, so as to release vitality for

promoting high-quality development of the industry.

5 CONCLUSION

With the accelerated deployment of 5G networks

and breakthroughs in big data, cloud computing,

artificial intelligence and other technologies, China

has entered the fast lane of digital economy

development. As a new factor of production, data

injects new impetus into the transformation and

development of traditional industries, and speeds up

the upgrading and optimization of traditional

industries.The deepening integration of the digital

economy and the real economy has promoted the

emergence of new technologies, new industries and

new models. It has become an important path to

improve the modern economic system and achieve

high-quality industrial development. In addition, the

digital economy boosts the high-quality

development of the industry. It is also necessary to

further improve the construction of digital

Analysis on the Internal Mechanism and Implementation Path of Digital Economy to Promote the Development of High Quality Industry

infrastructure, strengthen the security protection of

economic data, accelerate technological innovation,

and cultivate more innovative digital economy

talents.

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