Digital Economy in the Internet Age

Digital economy is a strategic choice to grasp the new round of technological revolution and new opportunities for industrial change. General Secretary Xi Jinping stressed that in recent years, the Internet, big data, cloud computing, artificial intelligence, blockchain and other technologies have accelerated innovation and increasingly integrated into the whole process of economic and social development in all fields, and the digital economy is developing faster, more widely radiated and more deeply influenced than ever before, and is becoming a key force in restructuring global factor resources, reshaping the global economic structure and changing the global competitive landscape. In order to coordinate the overall situation of the great rejuvenation of the Chinese nation strategy and the world’s unprecedented changes in the height of the two major domestic and international situations, development and security, give full play to the advantages of massive data and rich application scenarios, promote the deep integration of digital technology and the real economy, empower the transformation and upgrading of traditional industries, give birth to new industries and new business models, and continue to strengthen and expand China’s digital economy.

Economic development is mainly driven by technological innovation constantly. From the agricultural economy, industrial economy to the digital economy era, each major technological innovation has brought about changes in productivity and production relations, and a new techno-economic paradigm.

In the agricultural economy era, land and labor were the main factors of production, and the emergence of technological tools for agricultural production, such as stone tools, iron plows and waterwheels, propelled the development of the agricultural economy.

In the industrial economy, labor, capital and technology are the main factors of production, and the emergence of mechanized, electrified and automated industrial technology tools has driven the development of the industrial economy.

In the era of digital economy, labor, capital, technology and data are the main factors of production, and the emergence of digital technologies such as computers, the Internet and artificial intelligence has made economic activities fully informatized, networked and intelligent, driving the development of the digital economy. The digital economy will produce changes in the economic operation mechanism and underlying logic different from those in the industrial era, generating new digital assets and digital property rights.

The four stages of digital economy.The digital economy did not come out of nowhere. The digital economy has gone through four stages of development, namely, information economy, network economy, platform economy and intelligent economy. The evolution of digital economy is driven by digital technology production tools, and the logic of digital technology innovation follows the development path of informatization, networking, platform and intelligence, that is, the path from computing data, transmitting data, converging data and analyzing data, which makes the form of digital products more and more advanced, from local information, network information, converging information to intelligent information.

First, the stage of information economy development. The representative stage is the 1960s-early 21st century, which is characterized by computer technology, and its important assets are information, information network and information technology, and the representative enterprises are IBM, Intel and Microsoft and other global famous enterprises.

The second is the stage of network economy development. The representative stage is the 1970s-21st century decade, which is characterized by the development of the Internet as a technology, and its important assets are network, traffic and connection, and the representative enterprises are AT&T, Cisco, Motorola, Netscape, Yahoo and other network enterprises.

Third is the stage of platform economy development. The representative stage is the 20th century – the 1920s of the 21st century, is characterized by cloud computing, big data technology, its important assets are the platform, big data and cloud services, the representative enterprises are Amazon, Alibaba, Tencent and so on.

Fourth is the stage of intelligent economic development. The representative stage is the 1920s of the 21st century, which is characterized by technologies such as Internet, Internet of Things, artificial intelligence, blockchain, etc. Its important assets are data, arithmetic, and algorithms, and the representative enterprises are Google, Nvidia, Huawei and other well-known enterprises. The form of digital economy is entering a stage of intelligent development supported by “data + computing power + algorithm” for the collaborative application of the whole network.

Whether it is information economy, network economy, platform economy, or intelligent economy, all are different forms of expression of the digital economy at different stages, collectively referred to as the digital economy. In the future, the digital economy will probably enter a new stage of meta-universe economic development. Starting from the 1930s of the 21st century, its important assets are interactive experience, imagination and innovation; in terms of technological tools, it is driven by the integrated application of technologies of Web 3.0, artificial intelligence, block chain, Internet of Things, extended reality, digital twin, and spatial computing; representative companies include Meta, Apple, Microsoft, Tencent, Baidu, etc.

The leap in digital productivity and production relations is also a gradual process. As the level of computing continues to rise and the digital intelligence continues to improve, the digital economy industry continues to evolve and mature. The digital economy is integrated with the real economy, with different focus at different stages and different types of digital assets and forms of property rights.

Therefore, what we see more happening as a result of the technological application of the fourth industrial revolution is a major change in the production function, which is affecting our productivity and production relations through digital technology and data elements. This change is not only reflected in the role of the production function on economic growth, it is also reflected in the supply and demand side of the market. Demand and supply are balanced through the intermediate digital platform market X. Through digital data elements, information, knowledge and intelligence, the platform market drives an equilibrium between the supply side and demand side, thus achieving an accurate and intelligent match.

Leave a Reply

Your email address will not be published. Required fields are marked *