The future development trend of the digital economy

Future Development Trends of Digital Economy:

1. The government has introduced a series of policy measures favorable to the development of the industry, and has made every effort to build the supporting infrastructure and adopt flexible regulatory measures, which provides a broad space for the development of digital economy.

Since 2015, China's government has adopted a flexible regulatory strategy of developing first, regulating later, and doing some things but not others for the emergence and development of related technologies and business models in the development of the digital economy, which has been proved to be an effective and correct approach.

2, China's digital economy has established a huge market scale, and has a large number of consumers.

Based on the favorable conditions that China has the world's largest consumer market, driven by a large consumer group, China's digital economy market scale continues to expand, the rapid growth in the number of users, so that innovations continue to emerge, which prompted China's Internet enterprises and their business models to further enhance the competitiveness.

The most important feature of the digital economy and the Internet industry is the Metcalfe effect, an economic pattern that relies on scale to achieve marginal costs close to zero. Internet companies usually take a free model to launch services, with the user scale continues to expand, will trigger the Metcalfe effect, that is, the network value and the square of the user scale is proportional to the square of the enterprise value to achieve exponential growth.