1. Introduction
Humanity has entered the era of the digital technology revolution, with the digital economy becoming the main theme of current economic development. Countries worldwide are making digital economy a national development strategy through top-level design and policy mechanisms [
1]. For instance, France was the first to release its digital economy strategy in 2008, followed by the United States with its data-driven innovation policy, and the European Digital Agenda proposed new guidelines on digital technology standards and compatibility. China also attaches great importance to digital entrepreneurship as a major strategic issue. As China enters the digital economy era, activating the digital economy’s vitality in counties is of great significance for innovation-driven development and promoting urbanization with counties as important carriers. To promote this process, in 2014, the National Development and Reform Commission of China issued a notice on accelerating the implementation of the Information Accessibility Project, aiming to promote digital infrastructure construction, facilitate the digital transformation of industries, cultivate new forms of digital economy, and enhance digital service capabilities, thereby fostering county-level digital industry development and stimulating market vitality and social creativity at the county level. The 2018 China Digital Enterprise White Paper emphasized the critical role of entrepreneurial elements such as digital strategies, digital technologies, and digital talents in digital entrepreneurial enterprises. These national-level digital strategies can revolutionize traditional entrepreneurship, ignite digital entrepreneurship, and promote rapid development of the national digital economy [
2]. Digital entrepreneurship has emerged in response to the rapid advancement of digital technologies and the digital economy, becoming a significant force driving social transformation. As a key catalyst for digital economic development, it is fundamentally reshaping economic growth models, industrial structures, entrepreneurial paradigms, and lifestyles. From a practical standpoint, while many still celebrate the accomplishments of traditional entrepreneurship, the convergence of “intelligence and entrepreneurship” is redefining conventional approaches. Numerous digital ventures that embrace adaptability and innovation have overcome traditional temporal and spatial limitations, forging new entrepreneurial paths and notable success stories. For example, companies like Alibaba Cloud and Tencent have effectively embedded emerging digital technologies into their services and products, exemplifying “comprehensive digital entrepreneurship.” Taobao, by creating a digital information platform, pioneered a “hybrid digital entrepreneurship” model that seamlessly integrates online and offline resources, playing a key role in advancing China’s digital economy. Thus, whether viewed through the lens of national strategic planning or entrepreneurial evolution, digital entrepreneurship represents a dynamic and challenging frontier that continues to garner attention from governments, industries, and academia alike.
Digital entrepreneurship, as an integral component of the digital economy, has emerged as a global trend in entrepreneurial activity. It is not only a result of the application of information technology but also a process in which entrepreneurs leverage digital tools to identify and exploit market opportunities, thereby creating innovative business models. Compared with traditional forms of entrepreneurship, digital entrepreneurship is characterized by lower costs, reduced entry barriers, and greater flexibility. These features make it a vital driver of innovation and economic development. Digital entrepreneurship refers to the process by which entrepreneurs leverage digital technologies—particularly the Internet and mobile Internet platforms—to develop new products and services and establish innovative business models. Compared with traditional forms of entrepreneurship, digital entrepreneurship is marked by lower entry barriers, greater flexibility, and stronger innovativeness, making it a vital force in driving high-quality economic development. It is not merely the outcome of technological application, but rather the result of a deep integration between digital technologies and market demand. This integration has facilitated the emergence of new forms of products and services and transformed the operational models of traditional industries. In China, the development of digital government has played a pivotal role in promoting digital entrepreneurship. The digital transformation of government governance is a dynamic process in which governments, driven by digital technologies, achieve the digitalization of social governance and public service delivery. It plays a crucial role in reshaping the mechanisms of economic and social operations and advancing the modernization of government governance [
3]. By enhancing digital infrastructure, streamlining entrepreneurial procedures, and optimizing the policy environment, the government has significantly facilitated the rapid growth of digital entrepreneurship. Notably, at the county level, digital government has not only improved the entrepreneurial ecosystem but also supported the initiation and growth of numerous digital ventures through incentive mechanisms. China’s “National Pilot Policy of Information Accessibility”, launched in 2014, provides a valuable quasi-natural experiment for identifying how the digital transformation of government governance influences county-level digital entrepreneurial vitality.
Theoretical research on digital entrepreneurship is still lagging and insufficient to guide practice. While scholars have mainly focused on traditional entrepreneurship, digital entrepreneurship is rapidly flourishing, meeting user demands, driving digital economic development, and becoming central to smart city construction and digital life. Existing studies have examined entrepreneurial elements [
4,
5,
6], outputs [
7,
8], influencing factors [
9,
10,
11], and business models, but these findings remain fragmented and lack depth. As the origin of digital economic and social transformation, digital entrepreneurship plays a crucial role in employment creation and innovation. Enhancing county-level entrepreneurial vitality can strengthen the digital and platform economy, generate flexible jobs, and enable counties to integrate into the digital economy. Yet, more than half of China’s entrepreneurial activities remain concentrated in wholesale and retail, with relatively low shares in knowledge-intensive industries such as information and communication, showing a gap compared with developed countries [
12]. Moreover, most research on government digital governance and entrepreneurship focuses on urban contexts [
13], with limited attention to underdeveloped counties. Thus, how government resources and digital infrastructure stimulate county-level entrepreneurial vitality remains an important but underexplored issue.
To address this research gap, this paper uses panel data from 1206 counties across China from 2010 to 2020, with the 2014 implementation of the “National Pilot Policy of Information Accessibility” as a quasi-natural experiment, to systematically examine the impact of the information accessibility pilot project—a specific measure of government digital governance—on county-level digital entrepreneurial activity and its mechanisms using the difference-in-differences method. The results indicate that the implementation of the “National Pilot Policy of Information Accessibility” significantly stimulates county-level digital entrepreneurial vitality. The primary mechanisms through which the policy promotes entrepreneurship include enhancing regional innovation capacity, optimizing employment structures, and strengthening infrastructure. Moreover, the policy demonstrates a more pronounced effect in western regions, where resources and governance efficiency are relatively lagging.
Compared with existing studies, this paper makes three main contributions. First, it examines the impact of government digital governance on county-level digital entrepreneurship, thereby extending research on the economic effects of digital governance and complementing analyses of less-studied county areas. Second, using data from 2010 to 2020, it provides empirical evidence on the development of county-level digital entrepreneurship in China. Third, it theoretically and empirically identifies the mechanisms through which digital governance influences entrepreneurship, offering new policy insights for stimulating market vitality, advancing economic transformation, and promoting high-quality development.
The remaining structure of the paper is as follows:
Section 2 presents the literature review and policy background;
Section 3 outlines the theoretical framework and research hypotheses;
Section 4 introduces the research design, variable descriptions, and data sources;
Section 5 provides the empirical results and mechanism tests;
Section 6 explores the regional heterogeneity of the pilot policy;
Section 7 discusses the findings; and
Section 8 concludes with the main results and policy recommendations.
2. Literature Review
2.1. Government Digital Governance
Government digital governance is an important aspect of modernizing national governance and is key to modernizing public services and improving government efficiency. Digital governance involves not only the application of technology but also the formulation of corresponding policies and management systems to ensure and optimize the effective use of these technologies. Existing studies have sufficiently discussed government digital governance from a theoretical perspective. Zhang Tao et al. (2023) proposed a comprehensive digital government governance framework including technology governance, business governance, and operational management systems [
14]. This framework aims to promote coordinated development of digital government through centralized sharing of technical governance architecture, open and integrated business governance structure, and collaborative development of operational management systems. H. Scholl (2020) [
15] discussed the evolution of digital government from its early stages to the present and made predictions about future development directions over the next twenty years. Scholl pointed out that modern information technology brings transformation possibilities to the public sector, but technology alone is not enough to fully describe the various dimensions and impacts of digital government [
15]. E. D. Madyatmadja et al. (2016) studied the IT governance practices of the Jakarta provincial government in the digital era, emphasizing the importance of good IT governance for government strategy, especially in decision-making and oversight of high-level meetings, which is particularly important for preventing the abuse of digital assets [
16]. Virgílio A. F. Almeida et al. (2019) emphasized that governance is key to aligning public interest with societal benefits in digital services [
17]. By establishing appropriate governance principles, digital technology can become a powerful tool for improving public services.
2.2. Digital Entrepreneurial Vitality
Digital entrepreneurial vitality reflects the growth and innovation capability of entrepreneurial activities in the context of the digital economy. Yuming Zhai et al. (2022) used keyword co-occurrence and citation clustering analysis to propose a 3E (Empowerment, Evolution, and Ecosystem) framework to promote interdisciplinary dialogue and support evidence-based policy-making and practice [
18]. Catarina Fernandes et al. (2022) analyzed the link between digital entrepreneurship and sustainability through bibliometric analysis of literature in the Scopus database, revealing three main thematic clusters: innovation and entrepreneurship, digital transformation: strategy and business models, and sustainability and sustainable development goals [
19]. Gedas Baranauskas and A. G. Raišienė (2022) proposed a new conceptual framework combining sustainability and digital entrepreneurship, exploring how traditional business models are transformed into networked and integrated digital platform business models in a rapidly digitalizing economy, and highlighting sustainable management challenges in digital entrepreneurial and digital business ecosystems, such as vulnerabilities in organizational and social networks, sociotechnical pressures, and asymmetries in digital information and resources [
20]. In 2021, the National Bureau of Statistics officially released the Statistical Classification of the Digital Economy and Its Core Industries (2021) (hereinafter referred to as the Classification), which provides an authoritative definition of the conceptual connotation and scope of core industries within the digital economy. This has gradually unified the understanding of digital industries across various sectors of society. Dai Ruichen et al. (2022) were among the first to use the industry correspondence table provided in the Classification to match industry information from business registration data [
21]. By identifying the number of newly established enterprises, they used this as a sub-indicator and, together with other data sources, constructed a city-level digital economy development index. Similarly, Feng et al. (2023) used business registration data to assess digital entrepreneurial vitality across Chinese provinces [
22]. Overall, existing literature has yet to shift the research perspective to the county level, which represents the most fundamental regional unit within the national economic system.
2.3. Government Digital Governance and Entrepreneurial Activity
Government digital governance has an important impact on promoting entrepreneurial activity. By implementing effective digital policies and providing a supportive entrepreneurial environment, the government can significantly increase entrepreneurial activity and success rates. Tian Gan et al. (2023) [
13] found that the number of newly registered enterprises increased significantly after the implementation of China’s digital government policy. This study shows that digital government strategies positively promote entrepreneurial activity by improving government efficiency, reducing local government risk behavior, and improving access to financial resources [
13]. B. Hansen (2019) found that the digitalization and entrepreneurship promotion strategies advocated by the government significantly increased social trust and support for entrepreneurship [
11]. R. Tassabehji et al. (2016) [
23] studied how digital era governance (DEG) promotes organizational change in the public sector. Through case analysis, the study showed that chief information officers (CIOs) and other key figures in the public sector took on the role of institutional entrepreneurs, driving technological governance and policy shifts through proactive community mobilization and legitimization strategies [
23]. This shows that the government plays a key role in leading and supporting digital transformation.
In summary, as the digital economy era emerges, an increasing number of scholars have affirmed the driving role of digital economy development in fostering entrepreneurship. Unfortunately, this part of the research mainly focuses on the role of the openness of digital technology/platforms in identifying business opportunities and forming business models [
24,
25]. Existing research has not fully considered the promotional effect of digital government construction on digital entrepreneurship from the perspective of digital governance, especially in economically underdeveloped county areas. The government is one of the important subjects that enterprises face in the entrepreneurial process, and the level of government governance is an important part of the entrepreneurial environment. This research is of important policy significance for exploring new ways to enhance county-level digital entrepreneurial vitality and stimulate market vitality.
2.4. Policy Background
In 2017, the 19th National Congress of the Communist Party of China first explicitly raised “Digital China” as a national strategy, marking a new height of attention being paid to digital transformation in China. Subsequent policy documents, such as the “14th Five-Year Plan” in 2020, further detailed the implementation direction of the “Digital China” strategy, emphasizing the coordinated development of digital government, digital economy, and digital society, with digital government playing a leading and coordinating role in promoting overall digital transformation.
In June 2014, the National Development and Reform Commission of China, together with 12 departments including the Ministry of Industry and Information Technology, jointly issued a notice on accelerating the implementation of the Information Accessibility Project, marking the official launch of the “National Pilot Policy of Information Accessibility.” This policy selected 80 cities as national pilots, aiming to promote the modernization of public services and social management through government informationization. The selection of these pilot cities was not random but based on a comprehensive set of criteria, reflecting the government’s strong emphasis on the feasibility, representativeness, and scalability of the policy. First, candidate cities were required to possess a solid foundation in informatization, including well-developed broadband networks, data centers, and digital platforms as essential infrastructure. Second, cities were expected to have prior experience in smart city initiatives, along with a certain level of institutional foundation and technological accumulation. Additionally, the enthusiasm and governance capacity of local governments were critical considerations, such as whether dedicated implementation mechanisms were in place and whether matching financial resources were available. The selection process also paid special attention to regional balance and the diversity of city types, ensuring representation from the eastern, central, and western regions, as well as from coastal and inland areas, and including both megacities and prefecture-level cities. This diversity was intended to facilitate the generation of differentiated pilot experiences. Although all 80 pilot cities were incorporated into a unified national policy framework, there were notable variations in implementation during the execution phase. These differences were primarily reflected in the content of policy execution, areas of emphasis, implementation strategies, and supporting measures. For instance, economically developed eastern cities often focused on the intelligentization of public services and the improvement of governance efficiency. Cities like Shenzhen and Hangzhou were early adopters in developing smart healthcare and government service platforms. In contrast, cities in the central and western regions prioritized addressing infrastructure deficiencies and expanding access to digital public services. For example, Guiyang and Lanzhou emphasized the equalization of urban and rural information services. Each city tailored its pilot initiatives to its specific industrial structure and social needs: some focused on “unified city cards” or “convenient payment platforms,” while others promoted “government big data platforms” or “rural informatization service systems.”
As an important measure to advance the modernization of the national governance system and governance capacity, the “National Pilot Policy of Information Accessibility” aims to break information silos and achieve interconnection and information sharing among government departments through digital technology. This policy focuses on exploring how to optimize the allocation of public resources through big data and other modern information technologies, and to innovate new mechanisms and models for social management and public services. In terms of funding allocation, the policy adopted a strategy of “initial allocation and subsequent rewards and punishments,” encouraging pilot cities to actively implement informationization projects and ensuring the effectiveness of projects through subsequent assessments. In 2015, the National Development and Reform Commission and the Ministry of Finance, together with relevant departments, issued opinions on evaluating the “National Pilot Policy of Information Accessibility,” fully deploying the evaluation and acceptance work of pilot cities, and clarifying the evaluation indicator system, procedures, and requirements. This evaluation mechanism not only ensured the quality of policy implementation but also provided a basis for continuous policy optimization. With the rapid development of digital technology, in 2016, the General Office of the State Council further issued an implementation plan for promoting “Internet + Government Services” and implementing the “Information Accessibility Pilot Project,” requiring pilot cities to deepen “Internet + Government Services” and promote the realization of “one application, one window acceptance, one network handling.” These measures not only improved the quality and efficiency of government services but also promoted the modernization of the government governance system and governance capacity.
It is worth noting that the Information Benefits to the People policy adopted a fiscal mechanism of “initial allocation combined with subsequent rewards and penalties”, which reinforced performance orientation and resource-based incentives in policy design. However, this mechanism may have introduced selective effects on both the selection of pilot cities and the intensity of policy implementation. On one hand, regions with stronger fiscal execution capacity, data management infrastructure, and institutional responsiveness were more likely to be included in the initial pilot list. On the other hand, counties with greater initial capacity may have been more motivated to allocate additional resources to enhance policy implementation due to the incentive structure. As a result, the observed policy effects may partially reflect a combination of “policy intervention effects” and “self-selection effects”. Although current data limitations prevent us from fully disentangling these mechanisms, we have controlled for key baseline characteristics in the main models and employed propensity score matching to mitigate potential sample selection bias. Future research could further develop a more comprehensive identification strategy to uncover how fiscal incentive structures shape the endogenous pathways of policy implementation.
6. Further Analysis
China’s vast territory exhibits significant regional differences in government governance efficiency and marketing environment. Given the regional disparity in government service efficiency, service capability, and other aspects, the analysis based on the overall sample may obscure the potential differences in the impact of digital governance transformation on county-level digital entrepreneurial vitality in different types of counties. Therefore, this study divides the sample cities into eastern, central, and western sub-samples based on their regional distribution and conducts heterogeneity tests. The specific regression results are shown in
Table 5.
The regression results indicate that the impact of the “Information Accessibility Pilot Cities” policy on county-level digital entrepreneurial vitality varies by region. In the developed eastern region, the policy’s promotion effect on county-level digital entrepreneurial vitality is not significant; in the relatively developed central region, the policy’s impact is marginally significant at the 10% level; in the underdeveloped western region, the coefficient is 0.2152 and significant at the 1% level. From an economic perspective, this indicates that, holding other conditions constant, the policy increased county-level digital entrepreneurial vitality in western regions by approximately 24%, suggesting that in less-developed areas the entrepreneurial promotion effect of the policy is more pronounced and carries substantial policy significance. This suggests that government digital governance transformation can effectively overcome the economic development lag, low marketization level, and governance inefficiency in the central and western regions, significantly stimulating market vitality. The regional heterogeneity may be due to the superior governance efficiency, business environment, service level, and service capability in the developed eastern region compared to other regions, as well as the more developed commercial intermediary organizations, providing potential county entrepreneurs with multiple channels to obtain information and government services. Therefore, digital government construction has limited impact on improving governance efficiency, helping entrepreneurs obtain information, and serving entrepreneurs in the eastern region, resulting in limited influence on county-level digital entrepreneurial vitality. In the underdeveloped western region, the government’s digital governance transformation significantly improves governance efficiency, business environment, service efficiency, and service capability, while the lack of developed commercial intermediary organizations makes government digital governance crucial for entrepreneurs to obtain information and services, thus significantly impacting county-level digital entrepreneurial vitality. The central region’s governance efficiency, business environment, and commercial intermediary organizations are intermediate between the eastern and western regions, leading to an intermediate impact of government digital governance transformation on county-level digital entrepreneurial vitality.
It is important to note that the heterogeneity analysis reveals a significant positive effect of the Information Benefits to the People policy on county-level digital entrepreneurial vitality in western regions, whereas no statistically significant effect is observed in the eastern and central regions. This result requires a nuanced interpretation that considers both statistical power and regional characteristics. First, the “non-significant” findings in the eastern and central regions should not be directly interpreted as evidence of policy ineffectiveness. Further examination of sample sizes and residual variance reveals that the eastern region, affected by a limited number of pilot cases, has a relatively small sample size, resulting in larger estimation variance and potentially insufficient statistical power. Similarly, while the central region has a more adequate sample, the relatively high baseline level of infrastructure may limit the marginal improvement space, causing the policy effect to appear weaker and not statistically significant at conventional levels. Therefore, the non-significance in these regions should be understood as “effect uncertainty” rather than “absence of effect.” Second, the significant finding in the western region suggests that the policy exerts stronger marginal incentive effects in less-developed areas. Digital infrastructure investment, policy support, and factor integration generate greater institutional leverage in these regions, reflecting differentiated policy impacts. In summary, we recommend interpreting the non-significant results in the eastern and central regions as outcomes of limited statistical power and structural regional differences, rather than as indications of policy ineffectiveness, to avoid misjudging the heterogeneity of policy effects.
8. Conclusion and Policy Implications
Currently, the digital economy is rapidly developing worldwide, and China is accelerating the construction of a digital nation. The critical role of digital infrastructure and digital finance in stimulating economic vitality has been widely recognized by scholars and policymakers. However, research on the economic impact of digital governance remains insufficient. In the process of China’s modernization, the construction of a digital government aligns with the demand for modernizing national governance, and digital transformation of government governance is becoming an action direction for all levels of government to seize opportunities in the digital era and build modern governance capabilities. It plays an important role in optimizing public services, enhancing residents’ sense of gain, and stimulating enterprise vitality. Therefore, it is worth exploring how government digital governance can stimulate digital entrepreneurial vitality in the digital economy era.
8.1. Conclusions
This study uses the registration data of Chinese enterprises from 2010 to 2020 for 1206 counties in China and employs the difference-in-differences method to analyze whether government digital governance construction can enhance county-level digital entrepreneurial vitality using the “National Pilot Policy of Information Accessibility” as a quasi-natural experiment. The research conclusions are as follows: First, the National Pilot Policy of Information Accessibility significantly stimulates county-level digital entrepreneurial vitality. The conclusion is further supported by a series of robustness tests, including parallel trend tests, placebo tests, PSM-DID method, excluding the impact of the pandemic, and other policies. Second, government digital governance construction mainly enhances county-level digital entrepreneurial vitality through three pathways: improving regional innovation capability, optimizing employment structure, and strengthening infrastructure. Third, sub-sample regression shows that the impact of government digital governance construction on county-level digital entrepreneurial vitality varies by region, with a more significant incentive effect in central and western counties than in eastern cities.
8.2. Policy Implications
Based on this, the following policy implications are derived:
First, efforts should focus on narrowing the urban–rural digital divide and extending infrastructure coverage deeper into county-level regions. At present, county areas in China lag significantly behind urban centers in terms of information infrastructure and digital literacy, creating a pronounced digital gap. Addressing this requires sustained fiscal input in broadband, 5G, and training, which entails high costs and long-term commitment. The time horizon of such policies is long-term, as improvements in infrastructure and digital skills will only gradually translate into sustained entrepreneurial vitality.
Second, greater coordination is needed within county-level governance systems to dismantle the fragmented structure of “multiple authorities and segmented management”. Fragmented standards and barriers to data sharing not only reduce efficiency but also create risks of unequal access to services. Building integrated government service platforms and unified data standards requires governance capacity, and the success of such reforms depends on the ability of local governments to mobilize resources and overcome institutional inertia.
Third, it is necessary to develop a differentiated digital entrepreneurship ecosystem tailored to the diversity of county contexts. Counties vary greatly in terms of economic structure, labor mobility, and industrial foundations, and “one-size-fits-all” approaches are likely to fail. Policies should therefore grant local governments sufficient flexibility to combine digital governance with local comparative advantages, such as “agriculture + digital” or “tourism + digital”. The risks here lie in policy misalignment or resource misallocation, but with adequate governance capacity, such strategies can produce both short-term benefits (entrepreneurial entry) and long-term outcomes (enterprise survival and innovation).
Fourth, dynamic evaluation and incentive mechanisms should be strengthened to enhance local government proactiveness. Establishing multidimensional evaluation systems and linking them with fiscal transfers can ensure that resources are allocated based on performance. However, this also carries risks of formalism or distorted incentives. The success of such performance-based incentives depends on transparent governance and the careful design of indicators. Furthermore, evaluations should consider not only immediate outcomes but also longer-term entrepreneurial quality, thereby balancing short-term signals with sustainable development.
Taken together, these policy implications demonstrate that government-led digital governance is most effective when accompanied by sufficient fiscal support, strong governance capacity, and coordinated institutional arrangements. Under such conditions, digital governance can not only stimulate immediate entrepreneurial activity but also foster sustained entrepreneurial development and contribute to the long-term transformation of county-level economies.
8.3. Limitations
Although this study has deeply explored the impact of government digital governance on county-level digital entrepreneurial vitality, there are still some limitations that need to be addressed in future research. First, the study relies on county-level registration data from 2010 to 2020, which effectively captures entrepreneurial activity but does not reflect firm quality dimensions such as survival, growth, or innovation. Moreover, the outcome measure is narrowly focused on IT-related and information service enterprises, which limits the ability to generalize results to other sectors. Second, all counties within pilot cities are classified as treated, yet significant intra-city heterogeneity exists—particularly in top-tier cities with stronger infrastructure and talent pools—which may bias estimates and suggests the need for more granular designs. Third, the allocation of pilot policies was not random and may have been influenced by fiscal capacity, industrial structure, or institutional readiness, raising concerns of potential selection bias. Fourth, the results may be confounded by overlapping public policies, such as the Broadband China strategy and national big data pilot zones, making it difficult to fully isolate the effects of the Information Accessibility pilot. Fifth, the year 2020 presents a unique context due to the COVID-19 pandemic and related policy interventions, which may have distorted both enterprise registration and governance outcomes, rendering results particularly sensitive to this year. Finally, the associations identified in this study should be interpreted as correlational rather than strictly causal. Although robustness checks mitigate some endogeneity concerns, the evidence cannot definitively establish causal mechanisms. These limitations should be borne in mind when applying the conclusions to policy or theoretical generalizations.