1. Introduction
Against the backdrop of a slowing global economy and challenges to China’s economic recovery, the advancement of the digital economy (DE) has provided new momentum for economic growth. However, the real economy (RE), which serves as the foundation of economic development, faces multiple issues such as insufficient developmental momentum, structural imbalances in supply and demand, and regional development differences. The accelerated progress of digital technological revolution and industrial transformation has facilitated the IDR [
1]. This integration has evolved into a powerful catalyst for economic development and can propel the economy toward the pinnacle of high-quality development [
2]. Consequently, it is crucial to facilitate the development of IDR.
DE represents a novel economic paradigm that has emerged alongside the iterative advancement and application of digital technologies. It is recognized as the third significant economic model, succeeding the agricultural and industrial economies [
3]. Tapscott first introduced the DE and defined it as an economic model that facilitates the digital representation of information flow [
4]. Due to varying research perspectives, a unified and precise definition of the DE has not been established. The definition of the DE can be categorized into narrow and broad dimensions. In the narrow sense, it can be summarized as economic activities fundamentally driven by digital elements. While in the broad sense, it encompasses economic activities significantly enhanced by digital elements, with this enhancement primarily stemming from digital industrialization and industrial digitalization.
After the financial crisis of 2008, the Federal Reserve classified the real estate and financial sectors as part of the non-real economy. The existing literature seldom defines the RE specifically, but with the deepening of related research, the conceptual definition of the real economy has gradually become more unified. In its broad sense, the RE refers to all economic activities related to the production, distribution, exchange, and consumption of tangible products and services. It encompasses all stages from raw material extraction, processing, and manufacturing to sales and consumption. The broad definition of RE includes not only manufacturing, agriculture, and construction but also sectors within the service industry that provide material support to society. On the other hand, the narrow definition of the RE focuses more specifically on economic sectors that directly create material wealth and tangible products. Typically, the narrow definition of the RE emphasizes traditional industries and actual production activities [
5].
IDR is a product of the continuous development of economic society. Some scholars considered that IDR is essentially the enhancement and innovation of traditional industries through the new elements from the DE, including advanced technologies, data elements, and platforms [
6]. Sun et al. stated that IDR signified the extensive application of advanced digital technologies within the real economy sector [
7]. This integration fosters a synergistic relationship between the DE and RE and forms a virtuous circle. Specifically, the RE underpins the development of the DE by providing a robust foundation of talent, technology, capital, and infrastructure, thereby creating a conducive environment for the DE’s sustainable growth. Concurrently, the DE empowers traditional industries by leveraging digital technologies to enhance the efficiency of processing, production, circulation, and consumption within the RE. This empowerment drives the digital transformation and upgrading of the RE, leading to improved operational efficiency, optimized product quality, and technological innovation. This deep integration generates synergistic effects, boosting national and regional competitiveness. The growth of the DE is closely linked to the foundational support of the RE, and the modernization of the RE is reliant on its digital transformation. Thus, IDR establishes an interdependent relationship that propels the continuous advancement of both the DE and RE. The promotion of IDR is conducive to fully releasing developmental dividends of the DE, enhancing the modernization level of the RE, strengthening the vitality and resilience of economic development, and facilitating the formation of a new development paradigm.
However, the development of IDR in China faces multiple challenges. At this stage, there are still some constraints hindering the IDR, including digital divides across regions, an incomplete market system for data elements, bottlenecks in critical core technologies, a significant shortage of digital talent, and lagging legal frameworks for intellectual property protection. Consequently, it is imperative to address the following questions: How can IDR in China be systematically, reasonably, and scientifically measured? What are the spatial and temporal trends of IDR? Are there regional differences in its development? What are the underlying driving factors? A comprehensive analysis of these issues will significantly contribute to the profound integration of the DE and RE.
On a global scale, the coordinated development of the DE and RE has become a key issue in the economic transformation of various countries. European nations, particularly those within the European Union, have leveraged the DE to drive the transformation of traditional industries, achieving significant economic growth. Brynjolfsson and McAfee emphasized the profound impact of technology on productivity and employment patterns [
8], while Choudary analyzed how the platform economy has facilitated the IDR in the United States [
9]. Rodríguez-González et al. found that in a developing economy like Mexico, fostering a digital organizational culture can strengthen the company’s ability to acquire, assimilate, and apply external knowledge and resources, thereby enhancing its ability to absorb new information [
10].
For China, the existing literature mainly emphasizes the impact of the DE on RE on the micro level, with limited exploration of their interactive relationship from a meso-level perspective. For instance, Jiang et al. empirically analyzed the overall effects, conditionalities, and stage-specific characteristics of the DE’s impact on the RE, revealing a significantly negative impact and a discernible “crowding-out effect” [
11]. Liu et al. examined the micro-level implications of DE development on the investment efficiency of the RE, further discussing potential heterogeneities related to property rights, regions, and industries [
12]. Yang et al. demonstrated that the development of digital transformation enhances intrapreneurship in traditional enterprises by altering labor input. Additionally, the execution of digital strategies exhibits a positive relationship with innovation and the progression of cutting-edge technologies [
13]. Jiang et al. indicated that the adoption of digital technology significantly boosts the efficiency of enterprise investments, particularly in privately owned enterprises, firms with a high equity concentration, and those operating in technology-intensive sectors [
14]. Cheng et al. conducted an empirical analysis to explore how digital transformation influences the total factor productivity of enterprises in the RE [
15].
Currently, the research concerning the evaluation of the level of IDR remains relatively limited, with existing studies primarily concentrating on two methodological approaches. The first is the input–output method, which has been employed by a limited number of scholars to assess the level of IDR within specific industries at a meso level, thereby uncovering variations in integration levels across different sectors within those industries [
16]. However, while the input–output method effectively measures IDR at the industrial level, it falls short in accurately capturing integration at non-industrial levels. The second method is the coupling coordination degree method (CCDM), which is derived from a comprehensive analysis of the dynamic interdependence and interaction between subsystems [
17]. It has been widely used in various fields, including economics, ecology, geography, and others [
18]. The CCD serves as an indicator to assess whether a composite system is evolving toward a higher order, signifying sustainable development. Research on CCDM has predominantly focused on economic development [
19], the ecological environment [
20], new urbanization [
21], socioeconomics [
22], and technological innovation [
23], among others. With the ongoing advancement of the DE, CCDM has been widely applied to studies involving the DE, including the relationship between the DE and carbon environment governance [
24], DE and tourism development and the ecological environment [
25], digital infrastructure and inclusive green growth [
26], DE and high-quality energy development [
27], and DE and higher education [
28]. In essence, the CCDM effectively captures the extent of mutual influence and coordinated development between two subsystems. Given that IDR represents a long-term, complex process of mutual penetration and interaction between the DE and the real economy (RE), it aligns closely with the conceptual underpinnings of the CCDM. Therefore, drawing on relevant research [
29], this work employs CCDM to measure the level of IDR.
Regarding underlying mechanisms, extensive research has investigated the effects of IDR, but the study focusing on its influencing factors remains limited. The influence of IDR has been widely examined in areas such as urban green total factor productivity [
24], carbon emission efficiency [
13], energy productivity [
16], industrial green transformation [
6], the risk of stock price collapse [
7], and enterprise green innovation [
2]. Additionally, Xin et al. highlighted that the enhanced integration level between the DE and the industry is beneficial for the improvements in the development of the sustainable environment, the efficiency of industrial energy utilization, and the consumption structure [
30].
Through the review of the literature, it can be observed that existing studies have explored the coordination development of the DE and RE from various perspectives, leading to certain theoretical achievements. However, since the development of the digital-real economy’s integration in China is still in its early stages, there is currently a lack of more in-depth and systematic analyses. Based on this, this work conducts a comprehensive analysis of the spatiotemporal evolution and influencing factors of CCD. Firstly, evaluation index systems for the DE and RE are constructed based on existing research, and the entropy weight method is utilized to evaluate their levels. Secondly, the CCDM is utilized to assess the level of IDR across provinces and four major regions. Thirdly, the Dagum Gini coefficient is utilized to measure regional differences and their sources in the level of CCD. Fourthly, the kernel density estimation method is adopted to investigate the temporal evolution trend of IDR. Finally, the spatial autocorrelation model is employed to identify spatial agglomeration patterns, followed by the application of GTWR to examine the influencing factors of IDR.
The marginal contributions of this study are mainly reflected in the following aspects: The first contribution is the improvement of the indicator system. As a relatively mature economic form, the DE has a rich variety of measurement methods. However, a unified conclusion has not yet been reached. Based on the summary and generalization of existing research on the indicator system, this study adds the innovation dimension to build it. The second contribution is the supplementation of empirical analysis. Previous studies have used various models to analyze the spatial–temporal evolution of the CCD. However, the influencing factors of the integration level and their underlying mechanisms have not been systematically analyzed. This represents a significant gap in the existing theoretical framework and an important breakthrough for advancing research in this field. One goal of this work is to enrich the theoretical framework of CCD between the DE and RE; another objective is to provide actionable recommendations for the IDR in China, offering policy suggestions and practical guidance for local governments to formulate more targeted regional development strategies and facilitate coordinated development across regions.
The subsequent structure is as follows:
Section 2 states a detailed description of the evaluation index selection, research methods, and data sources;
Section 3 clarifies the results;
Section 4 discusses the underlying reasons of results and policy suggestions;
Section 5 states the conclusions.
4. Discussion
4.1. Interpretation of the Spatial–Temporal Evolution of CCD Between the DE and RE
The CCD in China exhibits an overall positive development trend, while it keeps at a relatively low level. A limited number of provinces, primarily located in remote western regions such as Xinjiang, Qinghai, and Gansu, demonstrate the lowest CCD level. While a few regions, particularly coastal provinces in the east, show the highest levels of CCD. In all, the issue of uneven development is particularly prominent.
The east has maintained the highest CCD level, demonstrating a steady annual growth rate of 2.68%. This reflects the region’s remarkable effect in fostering the CCD. The underlying reasons may lie in the fact that the east leads the nation in terms of infrastructure development, talent pool, innovation, and economic development, thereby possessing a solid foundation for both the DE and the RE [
48]. This foundation exerts a strong driving force in promoting the coordinated development of the DE and RE.
Provinces ranked lower in the CCD level are primarily concentrated in the west and northeast, which collectively face multiple development challenges. These regions exhibit notable deficiencies in some aspects, such as economic vitality and digital infrastructure development, which hinder the efficient flow of information and the deep exploitation of value [
26]. Such limitations limit the realization of their integration. Among these regions, the northeast has experienced the slowest growth rate in CCD. Prior to 2015, the northeast led the western region in CCD levels due to its robust heavy industrial base. However, its late-mover advantage has diminished in recent years due to slow economic restructuring, aging industrial structures, brain drain, and technological lag. In contrast, the western region has gradually surpassed the northeast in integration levels, benefiting from opportunities brought by the Western Development Strategy and the Belt and Road Initiative [
29].
The CCD level across Chinese provinces exhibits significant spatial heterogeneity. From 2012 to 2016, the degree of difference narrowed, but from 2016 to 2022, it gradually widened. A plausible explanation is that prior to 2016, big data technology is in its nascent development stage, with relatively limited applications primarily concentrated in industries such as the internet and telecommunications, resulting in lower CCD levels and less pronounced regional disparities. In March 2014, big data is first included in the Government Work Report, marking its formal recognition at the national level. Subsequently, the Big Data Industry Development Plan (2016–2020) is officially issued in 2016. In 2021, the 14th Five-Year Plan for Big Data Industry Development is subsequently released [
49], leading to the accelerate advancement of the big data industry. In addition, due to disparities in economic development levels, infrastructure, and resource allocation across regions, coupled with the difficulty for low-level provinces to catch up with high-level provinces in the short term, the disparity in coordinated development between the DE and RE gradually widened. This signifies the ongoing challenges in achieving the coordinated integration of the DE and RE.
In additions, the sources of spatial difference in the CCD level across Chinese provinces are analyzed. The results reveal that the inter-regional difference constitutes the primary factor driving the overall difference, suggesting that to achieve integration, priority should be given to reducing relative disparities between regions and promoting the CCD across different regions, followed by narrowing disparities among provinces. Meanwhile, the contribution rates of intra-regional differences and hypervariable density have exhibited a rising trend. This suggests that the effective implementation of strategies, including the Rise of Central China Plan and the Western Development Strategy, has substantially mitigated relative inter-regional differences [
24].
The CCD between the DE and RE exhibits regional variations, a phenomenon commonly observed worldwide. Differences in digital infrastructure, technological applications, and policy environments across countries and regions all influence the level of CCD. However, the characteristic of “higher levels in the eastern regions and lower levels in the western regions” is closely tied to China’s unique factors, such as regional development imbalances, policy support, and economic structure.
4.2. Analysis of Influencing Factors
This paper examines the influencing factors of CCD from six perspectives: the economic development level, policy intensity, the industrial structure, human capital, technological innovation, and the market environment. According to the results, the overall impact of the economic development level is not significant, but there are regional differences. Policy strength, human capital, technological innovation, and the market environment have significant positive effects on CCD, while the industrial structure exerts an inhibitory influence. This work further explores the differences in the impact of various factors across different regions and development stages, as well as the possible underlying reasons through typical case studies and regional practices.
From the perspective of the economic development level, the overall impact is not statistically significant, indicating that a high per capita GDP cannot be simply regarded as a guarantee for IDR. However, provincial analysis reveals that some eastern provinces (Jiangsu, Shanghai, and Zhejiang) and a few central provinces (Anhui and Hubei) still show a positive impact. These provinces usually have abundant research institutions, high-quality talent resources, and a well-established open environment, which allow per capita GDP to be better converted into the demand and conditions for IDR. Specifically, Shanghai has made significant investments in digital reform, with the resources derived from its high per capita GDP being more effectively channeled into the digital upgrading of industries, resulting in a positive contribution to CCD. In recent years, Zhejiang Province has not only maintained a high level of economic development but also actively promoted the internet economy and digital transformation, particularly achieving remarkable success in e-commerce and digital payment. Some traditional high-GDP regions, however, show negative coefficients in the CCD, indicating that industries relying solely on scale or extensive expansion may not smoothly integrate into the digital technology wave, leading to negative or insignificant impacts. China’s economic transformation stage is relatively complex and constrained by factors such as local government development strategies and industrial structure adjustments, which differs from the experiences of some developed countries.
The differentiated impact of DE policy intensity is more noteworthy. Overall, the intensity of digital economy policies has a positive effect, indicating that government support remains a crucial factor in facilitating the transformation of old and new driving forces and promoting the IDR. However, the negative coefficient for Jiangsu suggests that, in more developed digital industry clusters, the “overlap” of policies may lead to issues such as resource waste or redundant specialization. In the past, Jiangsu experienced instances of redundant construction and a lack of coordination in some high-tech industrial parks. Although DE-related policies are frequently mentioned in government reports, they have not been effectively translated into sustainable drivers of integration with the RE. This highlights the need for more refined policy-making and implementation to avoid diminishing policy effectiveness due to excessive concentration or a lack of coordination. In contrast, Guangdong Province has fully leveraged the policy dividends of the Guangdong–Hong Kong–Macau Greater Bay Area, with parallel investments in DE development and institutional safeguards. Cities such as Shenzhen have adopted a multi-pronged approach, including industrial support, government procurement, tax reductions, and the facilitation of investment and financing, thereby creating a robust support system for the flourishment of the DE and facilitating its positive integration with the RE. This finding specifically refers to issues related to local policy implementation and coordination between local governments in China, and it may not be universally applicable on a global scale.
The negative impact of industrial structure on CCD is worthy of attention. As the proportion of the tertiary industry continues to rise in China, if the service sector remains dominated by low value-added, labor-intensive, or traditional services, it will be difficult to achieve breakthroughs in the IDR. The internal imbalance within the tertiary industry, with certain traditional services (such as wholesale and retail, accommodation, and catering) having relatively limited demand for IDR, needs to be addressed. Instead, the focus should be on the role of digital transformation in the secondary industry, particularly manufacturing, which drives overall progress. Moreover, the adjustment of the industrial structure may involve a lag effect. For example, in Shanxi Province, the industrial structure is heavily reliant on coal and heavy industries, and this traditional industrial structure has slowed down the IDR. The provincial government has mainly applied digital technologies to the intelligent transformation of the coal industry. However, due to the relatively low-level digitalization needs of traditional industries and the long cycle required for industrial structural transformation, the integration process of the DE and RE in Shanxi has been relatively delayed.
Human capital and technological innovation both exhibit a strong positive driving effect, reflecting that the core of the digital transformation process lies in sustained investment in talent and technology. This is generally applicable worldwide, as many countries, such as the United States and Germany, exhibit similar phenomena. The presence of highly skilled digital talent enhances the effective integration of technical elements and data elements. Both the digital transformation of traditional sectors and the emerging digital industrial clusters depend heavily on skilled digital professionals to drive progress [
50], along with stable and sustainable funding to support research activities and technological iterations. Beijing, with its abundance of universities and research institutions, has attracted a large number of high-level research and technical talents in fields such as the internet, artificial intelligence, and big data, serving as a crucial foundation for the rapid development of the DE. This, in turn, has fostered the collaborative development of sectors such as manufacturing and cultural creativity. Technological innovation serves as the foremost productive force. Shenzhen, renowned for its high research and development (R&D) investment and innovative atmosphere, continues to invest heavily in areas such as 5G, artificial intelligence, and biomedicine. The rapid transformation of technological achievements into industrial products and service applications demonstrates a high degree of integration between the digital economy and the real economy. In comparison to regions such as Beijing, Shanghai, and Shenzhen, which are hubs for technological and educational resources, the high efficiency of integration is evident. It is clear that the upgrading of the talent structure and R&D investments have a “multiplier effect” in promoting the synergy between the digital and real economies. Some provinces in the central and western regions, although actively building digital infrastructure, lag behind their eastern counterparts in terms of the speed of digital integration with traditional industries, largely due to severe talent outflow or relatively weak research environments.
A conducive market environment signifies an efficient resource allocation mechanism, which optimizes market functionality, accelerates the efficiency of digital transformation in real enterprises, and facilitates the coordinated development of the DE and RE. Regions with a higher degree of marketization usually have a more open investment environment, sound laws and regulations, and a fairer competition environment, providing sufficient policy and social conditions for the IDR. In addition, marketization helps to break down administrative barriers and promote the free flow of technology, capital, talent, and other elements, thus enhancing the depth and breadth of DE applications. Guangdong and Zhejiang have shown strong market vitality in digital payment, internet finance, e-commerce, and other fields, which are inseparable from the relatively sound local market environment. In recent years, driven by the economic circle in the Chengdu–Chongqing area, Chongqing has gradually improved its market mechanism and actively attracted internet enterprises and technology-based enterprises to settle down, which led to the combination of the RE and digital platforms.
Overall, it is evident that the CCD in China exhibits significant spatiotemporal variations. These differences are influenced by a range of factors, including the foundation of economic development, the industrial structure, policy implementation, talent reserve, and the degree of marketization, all of which interact to shape the observed outcomes. By deeply analyzing the differences and underlying causes across regions, this can provide valuable insights for formulating more region-specific development strategies for China in the future.
5. Conclusions and Findings
5.1. Conclusions
This work systematically evaluated the spatial–temporal evolution and influencing factors of the CCD between the DE and RE in China from 2012 to 2022. The principal findings are summarized below:
The overall trend of CCD has shown an upward trajectory, although the levels remain relatively low, with significant spatial disparities observed across regions. Eastern provinces have consistently led in CCD levels. In contrast, western and northeastern regions, facing challenges such as insufficient economic vitality and weak digital infrastructure, have struggled with slower integration processes, particularly in the northeast region where industrial structure and talent outflow have hindered progress.
Regional differences in CCD have been widening over time, particularly after 2016 when big data technologies began to gain prominence. The study identifies inter-regional disparities as the primary driver of the overall differences, underscoring the need for targeted policies to promote cross-regional coordination.
The intensity of DE policies, human capital, technological innovation, and the market environment significantly contribute to CCD, while the industrial structure exerts a negative influence. In addition, the impact of the economic development level is not statistically significant.
5.2. Policy Suggestions
Based on the analysis, the following suggestions are proposed in this work:
To enhance the coordinated development of the DE and RE across diverse regions, specific strategies should be formulated based on local characteristics to address spatial differences and imbalances. Local governments should leverage regional development features and comparative advantages to advance the IDR. In particular, for remote western provinces such as Xinjiang, Qinghai, and Gansu, it is imperative to intensify the construction of digital infrastructure to enhance both the efficiency of information flow and the potential for value creation. Simultaneously, strengthening policy coordination between eastern, central, and western regions, especially in areas such as technological innovation and talent attraction, is essential for promoting resource sharing and leveraging regional complementarities, thereby facilitating interregional coordination in CCD development. For the northeastern region, efforts should focus on accelerating the digital economic transformation to mitigate the constraints imposed by outdated industrial structures and to foster the rapid growth of emerging industries. Given that interregional disparities remain the primary driver of uneven CCD levels, the implementation of differentiated policies at the national level, which are tailored to the specific conditions of each region, will be instrumental in narrowing provincial development gaps and enhancing the IDR.
Furthermore, it is essential to strengthen the local government’s capacity for precise implementation of DE policies. The experience of Jiangsu demonstrates that an over-reliance on digital industry clusters may lead to resource waste and redundant construction. Therefore, local governments should focus on the meticulous design and coordination of policies to prevent overlaps and inefficiencies in implementation. This approach will ensure the optimal realization of the benefits derived from the IDR.
Enhancing the development of digital human capital is essential. Region should align with their specific developmental requirements by establishing a diversified talent system to create effective mechanisms for cultivating and attracting digital professionals. Simultaneously, emphasis should be placed on emerging digital fields such as artificial intelligence and the Internet of Things, with targeted training programs to elevate the practical and innovative capabilities of digital talent. Areas with limited digital talent pools should implement more appealing recruitment policies, incorporating financial incentives and housing benefits. Additionally, increased investment in technological research is crucial, supporting innovation-driven projects and stimulating enterprise creativity through tax exemptions and funding subsidies, thereby fostering an optimized innovation environment. The successful experiences of regions such as Beijing, Shanghai, and Shenzhen indicate that a strong talent pool and an innovative technological environment are key to the development of the DE. These regions can serve as models for policy formulation.
Finally, it is crucial to enhance the market environment to promote the IDR. Policies should focus on advancing market-oriented reforms to improve resource allocation efficiency, optimize market mechanisms, and strengthen market competitiveness. Additionally, efforts should be made to dismantle administrative barriers and facilitate the free flow of technological, capital, and human resources. This will contribute to a higher level of CCD. Furthermore, refining the investment environment and legal frameworks and ensuring fair competition will create a more favorable ecosystem for the development of both the DE and RE.
In summary, through a combination of measures such as regional coordination, industrial optimization, talent acquisition, and market-oriented reforms, the IDR can be effectively promoted. These strategies offer more precise and feasible development pathways for different regions of China.
5.3. Deficiency and Prospect
Currently, there is no consensus on the definition, boundaries, and measurement criteria for IDR, which significantly limits the comparability and generalizability of research findings. Existing studies predominantly rely on macro-level statistical data, while high-quality micro-level data at the enterprise level remain limited. In all, the intricate dynamics between the DE and RE remain a pivotal domain for in-depth investigation. Future research should prioritize theoretical innovation, methodological advancements, policy evaluation, and the application of emerging technologies, thereby facilitating research that promotes the coordinated development of the DE and RE.