Digital economy, government intellectual property protection, and entrepreneurial activity in China

Abstract

ABSTRACT This study aims to explore the relationship between the digital economy and entrepreneurial activity from the perspective of government intellectual property protection. Based on data of 191 Chinese prefectural-and-above (PAA) level cities from 2015 to 2020, this empirical study conducts hierarchical regressions and spatial econometric analysis. The results show that the digital economy positively influences entrepreneurial activity. Meanwhile, the digital economy makes entrepreneurial activity show inter-city spatial dependence. Besides, government intellectual property protection plays a mediating role between the digital economy and entrepreneurial activity. Further, heterogeneity analysis shows that maintaining a high level of digital economic development and high-standard government intellectual property protection will be conducive to cities’ innovation and entrepreneurship.