1. Introduction
Since the onset of the twenty-first century, the world’s scientific and technical innovation activity has peaked historically against the background of the rapid evolution period. The factors of production in social and economic life have changed significantly during this process, and “data” has become the most important factor among them. As a result, the digital economy built on data has emerged as a new form of social development. It has gathered international support, and digital transformation has come about as the world’s largest development trend. Many countries have made digitization their top priority and actively promote the growth of the digital economy [
1]. Restructuring the economic structure, altering the competitive environment, and reorganizing global resource factors are all made possible by the digital economy, which also helps to create favorable conditions for closing the development gap between areas [
2]. China has seen remarkable growth in its digital economy in recent years. With Comrade Xi Jinping at its center, the Communist Party of China (CPC) Central Committee has prioritized the growth of the digital economy since the 18th CPC National Congress. It has seized the major historical opportunity for global digital development and transformation, systematically planned and coordinated the promotion of the construction of “Digital China”, and built a novel framework for the growth of the digital economy [
3]. Since 2017, the Chinese government has included “digital economy” in its work reports on four occasions. According to the China Digital Economy Development Report 2022 released by the China Academy of Information and Communications Technology (CAICT), a nominal annual growth rate of 16.2% was recorded in 2021, when the overall scale reached CNY 45.5 trillion. Its share of the GDP was 39.8%, marking an increase of 1.2 percentage points from 2020. This growth serves as a vital force for stabilizing economic growth and advancing the country’s development. Furthermore, the 20th Party Congress report emphasized the urgency of accelerating the establishment of digital China and fostering the digital economy’s growth; thus, the digital economy has emerged as a research hotspot.
Networking is a new trend in regional economic development [
4]. The new technical revolution, the new economic structure, the new method of allocating resources, and the need for innovation have all been deeply integrated to create the digital economy. At the digital geography level, it eliminates the constraints of physical space, converts “geographical proximity” in the conventional sense into “digital accessibility”, and establishes an innovative type of geographic pattern, acknowledging the intricacy of economic ties and the blurring of regional boundaries [
5], speeding up the growth of the digital economic network. On the one hand, the network can map the extent and depth of interregional cooperation and speed up the interaction of the components of the regional economic system. On the other hand, the “point–line–plane” development pattern of the digital economy network can quickly feed back information, avoid information asymmetry [
6], effectively reducing the cost of the spatial dissemination of innovation factors, accelerating the flow of knowledge, technology, and talents across regions, and realize the breakthrough from “a single point” to “network synergy” [
7]. In the context of the new era, promoting the integration of the digital economy with regional coordinated development policies is an essential way to achieve sustainable and high-quality regional economic development.
2. Literature Review
The American scholar Don Tapscott [
8] coined the phrase “digital economy” initially to describe economic activities driven by contemporary information technologies. As research in related fields continues to deepen, the interpretation of broader dimensions has gained a certain degree of consensus. Generally speaking, the digital economy is a new modern economic model, which is based on cyber infrastructure and centered on digital components to enhance economic efficiency using digital means. This model emerges as a sophisticated, sustainable economic form and a prime example of regional development characterized by intelligence, networking, and interconnectivity [
9,
10].
Currently, researchers are investigating the digital economy from various aspects. Their work can be broadly categorized into three main areas. First, there is an emphasis on the concept of the digital economy. Ouyang approaches it from a macro perspective, developing a multi-tiered analysis to understand its connotations and patterns [
11]. Bai focuses on rural areas, examining the unique characteristics and theoretical frameworks of rural digitization to propose development strategies [
12]. Additionally, certain scholars view the digital economy through the lens of data- and information-related industries. They emphasize how the integration of information and communication in traditional relations can lead to the digitization of economic activities via platforms like the Internet of Things, which promote the development of digital trade [
13,
14,
15,
16,
17]. The second main research area centers on the quantitative evaluation of digital economy progression, which involves establishing a multidimensional assessment framework and applying diverse analytical approaches to measure development dynamics. In terms of the indicator system, Lai constructs an indicator system from five aspects, including infrastructure construction, to make predictions for the future development of the digital economy [
18]. In terms of the scope of studies, Wang evaluates the level of the economy at the scale of the province in China [
19], while Huang chooses prefecture-level cities within specific provinces [
20]. In terms of methodological approaches, weighted principal component analysis (WPCA) and entropy weighting methods have been extensively employed for measurement. Wang uses the TOPSIS method to calculate the digital economy level of cities over a 10-year period [
21]. Meanwhile, emerging studies adopt more innovative and complex frameworks to assess digital economy development levels [
22]. Lastly, researchers focus on examining the spatial characteristics of the digital economy. These studies reveal insights into the spatial and temporal discrepancies, evolutionary patterns, and factors affecting the digital economy [
23,
24]. Meanwhile, Zhang employs methods like the Moran index to explore the spatial–temporal evolutionary trends within the Yellow River Basin [
25]. Luo discussed the regional characteristics of the digital economy based on the spatial Markov Chain transition probability matrix [
26], while Zhang analyzed the sources of regional differences in combination with the Dagum Gini coefficient on the basis of the characteristics of the spatial pattern of the provincial digital economy [
27].
According to the literature study, there is a fair amount of research on the digital economy’s spatial features and measurement. Additionally, the promotion effect of the digital economy on regional economic growth has been extensively discussed, leading to the formation of a more systematic theoretical system known as “geospatial–digital elements–economic growth”, which serves as the theoretical foundation for the long-term development of the digital economy as well as a good starting point for this study.
However, it can be found that, firstly, the research scale of the existing literature is primarily restricted to the provincial area or urban agglomeration, focusing on the general impact of the digital economy on the geographic space while ignoring the crucial aspects of cross-regional network collaboration. Secondly, the majority of the research focuses on measuring the regional digital economy’s level and analyzing interregional gaps, with little attention paid to the specific functional positioning and role transformation of various regions. Thirdly, there are fewer studies on the variations in the diffusion paths of various innovation factors. In light of this, considering the coherence of policies and the stage of development, this paper takes 2006–2022 as the time frame of study and examines 359 cities in China (including all prefecture-level and above cities, alliances, autonomous regions, districts, and some county-level cities under provincial jurisdiction). It employs digital patents to evaluate the digital sector, establishes a digital economic spatial correlation network through an adjusted gravity model, and systematically analyzes structural characteristics via social network analysis. Additionally, this study uses the quadratic assignment procedure (QAP) approach to examine the factors that influence the economic geographical network among cities.
This paper makes three main contributions. First, utilizing 359 prefecture-level cities as the subject of study, it methodically demonstrates the dynamic growth of the city-scale digital economy spatial association network and explores the processes of the creation and weakening of new and old connections, as well as the reconfiguration of geospatial patterns to provide a basis for comprehending the geo-dynamics of the digital economy. Second, the patterns of urban node dispersion in space are computationally delineated through integrating the improved gravity model with graph-theoretical methodologies, which advance the comprehension of its stratified topology and value diffusion channels, providing theoretical justification for modifying regional economic development strategies. Third, based on the QAP regression technique, this study considers how the urban economic network structure is formed by combining multiple factors, and analyzes the flow paths and speeds of different innovation factors to enrich the theory of innovation diffusion, which is conducive to providing a methodological innovation for the digital economy’s spatial governance.
5. The Formation Mechanism of the Spatial Correlation Network of the Urban Digital Economy
5.1. QAP Regression Analysis
QAP regression analysis was conducted on the relationship between the above influencing factors and the geographical correlation network of urban digital economy development, and the findings are displayed in
Table 11.
The difference coefficients of GDP per capita, the quantity of college and university students per 10,000 people, R&D investment, and the overall size of the telecommunication business are substantially positive. This indicates that the greater the differences in economic scale, population quality, scientific and technological innovation, and infrastructure construction—represented by the aforementioned four factors—the higher the extent of the digital economic network, and the more conducive it is to the formation of spatial correlation networks. On the one hand, cities with a higher GDP per capita tend to have a larger scale of economy and more students in colleges and universities. Leveraging their economic and talent advantages, such cities not only exert a demonstration effect but also actively promote their own rapid scientific and technological development. Their influence keeps spreading outward, allowing for frequent factor movement and distribution among nearby regions, which raises the degree of growth of the digital economy in nearby cities and regions. This strengthens the spatial correlation of the digital economy across cities. On the other hand, each city occupies a different position based on its specific characteristics related to economic scale, population quality, and innovation in science and technology, as well as the building of infrastructure, jointly making contributions to the digital economy. Cities with developed economies and many universities, advanced science and technology, and advanced telecommunication infrastructure focus more on high-end R&D and innovative applications regarding the digital economy. In contrast, cities with relatively backward economies, yet possessing certain labor resources and basic communication facilities, leverage their unique resources for technological application and promotion, and undertake some of the downstream activities in the digital economy industry chain. These differences between cities promote complementary relationships and improve the growth of the industry chain for the electronic economy, prompting cities to strengthen cooperation and exchanges, increasing the degree of spatial correlation and constructing a sophisticated and intimate network of geographical correlations for the economy.
The coefficient of variation in the urbanization rate of the population shows a fluctuating trend, which transitions from a negative value to a significant positive value. Earlier in the development process, because of the disparities in geographic location, resource endowment, policy support, and other conditions between cities, each city tended to develop its digital economy independently, and the gap in the urbanization rate was large, which hindered the construction of the digital economy’s network. As the economy and society continue to develop, the urbanization rate’s coefficient of difference turns to a positive value, and the larger the difference in the urbanization rate, the more conducive it is to the construction of the network, leading to the realization of agglomeration and synergistic development. The coefficient of the ratio of the added value of the tertiary industry and secondary industry among cities does not pass the significance test, demonstrating that the establishment of a spatial correlation network across cities is not substantially impacted by variations in this index.
5.2. Robustness Tests
5.2.1. Robustness Tests for Digital Patent Data
The digital economy is rich in connotation and covers a wide range, and there are more indicators related to the development of the digital economy. In order to further confirm the robustness and reliability of the results of this paper, alternative variables were selected for a robustness test. Firstly, the patent data is taken as the explanatory variable, the net overflow degree of the city is taken as the explanatory variable, and the increase in urban GDP and the added value of the tertiary industry (TIAV) are used as the control variables, and the regression analysis is carried out to obtain
Table 12. Then, the explanatory variable is re-measured, the explanatory variable, patent data, is replaced with the Internet broadband penetration rate (IBPR) to represent the level of digital economy development of the city, and the other conditions remain unchanged, and the regression analysis is carried out again. The results are shown in
Table 13.
By comparing the above results, we find that the coefficients of the independent variables of the surrogate model are consistent with those of the original model, all of them are significantly positive and the change in R2 is less than 10%, and the significance and sign of the control variables remain stable. In addition, the VIF values of the independent variables are all less than “5”, and there is no collinearity problem. The above results show that the core conclusions of this paper are not affected by the choice of variables and have strong robustness.
5.2.2. Robustness Tests for QAP Analysis
To confirm the validity of the main conclusions, the inter-city gravity matrix in 2022 is taken as the explanatory variable in this paper. The time lag strategy is adopted to predict and analyze the results in 2022 using the 2010 and 2015 data, respectively, and the experimental results are shown in
Table 14.
According to the robustness test results, the regression analysis of data from various time nodes shows that the coefficients of core explanatory variables, including GDP per capita, population urbanization rate, R&D funding input, the number of college and university students per 10,000 people, and the total amount of telecommunication businesses, all maintain a significant level. The sign of the coefficients is consistent, indicating that the direction and significance of each variable are stable. Meanwhile, the fluctuations of the R² and adjusted R² values of the model between 2010 and 2022 are small, respectively, between 0.160 and 0.175, reflecting that the overall explanatory power of the model is relatively stable. The above findings unequivocally demonstrate that this study’s model is robust across time dimensions and that its conclusions are trustworthy, accurately reflecting the long-term effects of numerous events on the inter-city gravity matrix.
6. Discussion
This study focuses on how China’s digital economy developed in 359 cities between 2006 and 2022. The scale of the digital economy has expanded quickly over time, especially in the era of the 13th Five-Year Plan. The total density of the cities’ digital networks has risen, with higher levels of network relevance and efficiency and lower levels of network hierarchy, showing the growing diversification of intra-network communication pathways. Notably, significant differences exist in the roles of cities within the network, with developed cities showing marked advantages in resource aggregation and communication. Taking net spillover degree and proximity to the center as examples, this study found that during the 11th Five-Year Plan period, the majority of cities had lower dispersion and closer net spillover entry values, and the cities were more distinguishable in their ability to communicate and synergize. In the Five-Year Plan phases of 12 and 13, some cities gradually surpassed others in digital economic development. This indicates that although the overall digital economy of most prefecture-level cities showed an upward trend, the increasing dispersion in the distribution of net inflow degree and closeness centrality has led to an imbalance among cities over time.
Compared with the existing literature, this study realizes breakthroughs in three aspects. Regarding the research perspective, it breaks through the previous limitations of focusing on the provincial or city cluster scale [
42,
43,
44,
45,
46], shifts perspective to the “city” level, accurately captures the role change in small- and medium-sized cities in the digital economy network, and fills the gap in research on the geo-dynamics of the digital economy among cities. Regarding the research content, distinguishing itself from a single static analysis based on distribution in the existing literature [
47,
48,
49,
50], this study analyzes the temporal evolution of and regional differences in the linkage structure both vertically and horizontally, building a comprehensive analysis paradigm of geospatial dynamic evolution. Regarding the research results, this study reveals the heterogeneity of the flow of innovation factors under the city network by determining the difference-driven mechanism of the factors, expands the application boundary of the innovation diffusion theory, and offers fresh concepts in the field of digital economy.
However, this study has several limitations. First, there are the limitations of patent data. The degree of the digital economy can be somewhat reflected in digital patent data, but the coverage of patent data is limited due to the one-sidedness of industries and technology fields, as well as the differences in regional innovation ecology. It is also challenging to cover data on other aspects, such as new business forms and modes of the digital economy, and there is a risk of underestimating the degree of the non-technology-driven digital economy. At the same time, cross-regional comparisons are challenging because of the potential standard variations in the definition of “digital patents” among cities, which might impact the timeliness and quality of the data. To improve the quality of the data, future research needs to establish a methodology for evaluating patent quality and further refine the classification of technological domains to increase the data’s coverage. Second, the gravity model has shortcomings. With the help of set thresholds, this study establishes the network during the model-building process, facilitating clear visualization and analysis. However, connections are frequently influenced by multidimensional factors, and fixed thresholds cannot intuitively reflect their internal mechanism. Future studies may consider the combination of threshold setting and mechanism analysis to guarantee the model’s robustness and dynamics. Additionally, there are restrictions on the choice of affecting elements. This study has the problem of insufficient dynamic adaptation while choosing influencing factors like the market environment and policy. Future studies should focus on refining the factor system and improving the dynamic and heterogeneous analysis of the components to more thoroughly and precisely investigate its spatial correlation network and formation mechanism.
7. Conclusions and Suggestions
7.1. Conclusions
This study examines the development of the digital economy across 359 cities between 2006 and 2022 and also builds a geographical correlation network of urban digital economy development, looking at how it forms. The key findings are as follows: (1) From the perspective of the overall network, China’s urban digital economy has shown a notable upward tendency overall, growing at an average yearly pace of 56.67%. Notably, the digital economy expanded rapidly during the “13th Five-Year Plan” period. The association network exhibits a sophisticated network structure pattern. In this context, the number of regions taking part in the spatial network of the digital economy has been growing, as have the network density, relatedness, and hierarchy. However, there is still much space for development because the network connection is insufficiently close and the total average value deviates significantly from “1”. (2) From the perspective of the individual network, the role of different cities in the digital economy network varies significantly, and the network shows a typical “center–edge” structure. As the primary beneficiaries, Shenzhen, Beijing, Guangzhou, and other developed cities exhibit a typical agglomeration development mode, with a strong influence on the entire network of digital economy associations. They are also able to effectively control the flow of factor resources to other cities. Conversely, less developed cities that are subject to the problem of network marginalization and have weak centrality and agglomeration capacity have hindered the growth of the digital economy. (3) From the results of the regression analysis, except for the difference matrix of the proportion of value added of tertiary and secondary industries, the difference coefficients of GDP per capita, the number of tertiary students per 10,000 people, the investment in R&D, and the total amount of telecommunication services all pass the significance test, and they always show a positive influence, serving as the key factors influencing the spatial network of cities and driving the optimization and reorganization of the structure of inter-city linkages.
In the future, we will broaden our focus on the digital economy, extending our research into 2023 and 2024, and continue to monitor the evolution of digital economy networks. At the same time, we plan to drill down to the county or urban level to analyze the differences in network topology at different scales. Furthermore, we will introduce international perspectives for comparison, allowing us to better enrich and improve the theoretical framework, as well as provide more timely and targeted academic support for optimizing the layout of the digital economy and promoting regional synergy.
7.2. Suggestions
Drawing on the investigation of the features of spatial correlation networks between Chinese cities and the examination of determining factors, the following recommendations are proposed to foster the digital economy’s balanced, sustainable, synergistic growth in Chinese cities.
Strengthen top-level design and enhance overall network synergy. Create a market-driven, government-guided mechanism for cross-regional digital economy synergy, focusing on the construction of standardized data interfaces and revenue-sharing rules that can be used by enterprises, forming a three-dimensional governance structure of “central policy traction–regional agreement linkage–urban market response”. The framework of the “East Counts, West Counts” project should promote the accurate matching of Eastern computing power demand with Western data center resources, and enhance the network density and relevance. Simultaneously, it is imperative to lower the hardware threshold for peripheral cities to join the network, implement corporate income tax reduction and exemption policies for areas with weak digital infrastructure, and increase investment in new types of infrastructure, such as 5G base stations and cloud computing centers in central and western China as well as in less developed regions.
Optimize the division of roles among cities and establish a benefit-sharing mechanism. Emphasis should be placed on implementing differentiated digital economy development strategies, pushing central cities like Beijing and Shenzhen to focus on high-end elements and original digital technology innovation, encouraging leading enterprises to take the lead in forming industrial innovation alliances, realizing innovation spillover through patent cross-licensing and technical standard output, and creating a global digital economy innovation hotspot. Peripheral cities should be guided to develop niche areas of the digital economy based on local characteristic resources. For example, cities with abundant agricultural resources can concentrate on the growth of smart agriculture and rural e-commerce; cities with enough workers can engage in labor-intensive digital industries, like data marking and digital content processing, to create a mismatch and complementarity with core cities. The creation of a “core–periphery” benefit-sharing system will increase the natural motivation for peripheral cities to join the network and achieve regional sustainability.
Direct the movement of important elements to encourage synergy and digital economic agglomeration. Expand assistance for the development and mobility of human capital, put the “Two-Way Mobility Program for Digital Talents” into action, and encourage eastern talent to support peripheral cities by offering technology shares and part-time services, while also giving them the chance to travel to the core cities for training. Moreover, the distribution of innovation resources should be optimized. The share of R&D funding in peripheral cities should be increased, and the key national technology programs and innovation platforms should be oriented toward less developed areas. To speed up the transformation of technological advancements, establish a cross-regional platform for collaboration between businesses, academic institutions, and research institutes in the digital economy. Additionally, encourage collaboration between businesses in peripheral cities and scientific research institutes in core cities.