Spatial Distribution of Digital Economy Model in Zhejiang Province, China

Abstract

Taking Zhejiang province as an example, based on county-level economic and social statistics, we established an index system for main factors driving the development of the digital economy. We used entropy, spatial autocorrelation, a Geographically Weighted Regression (GWR) model, and cluster analysis to explore the spatial differences between the development level and driving factors of the digital economy in Zhejiang. First, we observed spatial differences in the development of the digital economy in Zhejiang, with the level being high in the northeast and low in the southwest. Second, the influence of each driving factor represents strong spatial characteristics, and industrial innovation was the most important factor, with a distribution pattern of high in the east and low in the west. As a secondary driving factor, government input is consistent with the spatial layout of the economic factors. Commercial culture is strong in the south and weak in the north. Third, we observed multiple combinations of characteristics in the spatial differences of the four driving factors to establish the mechanism that drives the development of the digital economy in Zhejiang: the local digital economy/new business type is driven by the coupling of industrial innovation atmosphere and consumer demand, formed by developed market advantages. The three main bodies of consumers, government, and enterprises have formed a virtuous circle, promoting each other through the digitization of traditional industries and emerging digital industries, leading the development in the surrounding counties. Fourth, under the action of the four factors, three types of regional development types and 13 subcategories have generally been formed in Zhejiang: enterprise-consumer-led, business-government-led, government-consumer-led. Certain places, such as Hangzhou and Ningbo, are leading the implementation of the concept of digital development, creating the core of the digital economy in Zhejiang; Jiaxing and Jinhua are relying on transportation hub cities or global wholesale centers to rapidly develop intelligent logistics and transportation. In addition, with the support of the government, the later-developing areas are improving their infrastructure and developing the digital industry represented by ecology and tourism. For this reason, in the process of empowering digital economy development, complete attention should be paid to the development path of ecology, tourism, and other suitable digital industries in underdeveloped areas under the leadership of the government. We observed that enterprises and consumers create emerging digital industries in the leading areas of the digital economy in Zhejiang and then promote the digital transformation and upgrading of industries and governments. However, in the later-developing areas dominated by policy investment, the development of the digital economy is mostly oriented toward meeting the needs of industries and consumers, and the force driving emerging digital industries is weak.

Keywords

• digital economy
• spatial pattern
• driving mechanism
• local characteristics
• zhejiang