The Rise of Corporate Digital Transformation and Government Regulatory Innovation

Abstract

Purpose – In this study, we attempt to provide a background, a review of current development of the digital technologies and their effect on the digital transformation process as well as the current practices, and then offer our recommendations for identifying and taking strategic actions to exploit them. More importantly, we also aim to offer important recommendations for policy-makers and reformers how to better advance the innovation system by facilitating the development of digital technologies and take advantage of improvements in digital technologies, and how to effectively deal with the challenges created in the process of digital transformation and taking advantage of improvements in digital technologies.

Results –This paper finds that digital technologies with strong technological backing have brought technological spillovers to the economy while also generating shocks. The flow of data is more flexible and difficult to control, and this storage feature of personal information may bring about conflicts in the application of law; The powerful network effects and near-zero marginal costs of the digital economy make it difficult for entrants to enter, creating a huge impact on the traditional economy.

Conclusion–To maintain a healthy and developing market order, it is necessary for governments to innovate regulatory models and unleash human creativity in the digital economy. The study proposes that the government should innovate in three aspects of regulation: grasping trends, sharing governance, and creating an environment, so as to enhance the capacity and efficiency of government regulation, adapt to the new economic models and contribute more to the high-quality and healthy development of the digital economy.