In order to comply with the 14th Five-Year Plan for the development of digital economy, to better help China grasp new opportunities and challenges, and to seize the important node of the changing global competitive landscape, this paper applies factor analysis, based on three dimensions of infrastructure construction, scientific research and innovation capacity, and the current economic development, and selects the volume of goods turnover, domestic invention patent. The paper applies factor analysis to empirically analyze the level of digital economy development of 31 Chinese provinces in 2020 based on 3 dimensions: infrastructure construction, research and innovation capacity, and current economic development, and 11 secondary indicators such as the number of domestic invention patent applications granted. The research results show that regions with high overall scores generally have higher public factor scores in the three dimensions, and there is a decreasing level of China's digital economy development from the east to the west, with the northwestern region lagging behind in particular. Finally, this paper puts forward policy recommendations on ways to promote the development of digital economy according to the characteristics of different regions.

Yanning Yang, Chang Dong. Evaluation Index System of China's Digital Economy Development Level-Based on Factor Analysis. Academic Journal of Business & Management (2022) Vol. 4, Issue 18: 89-95. https://doi.org/10.25236/AJBM.2022.041815.

[1] Ding Zhifan. Research on the mechanism of digital economy driving high-quality economic development: A theoretical analysis framework [J]. Modern Economic Discussion, 2020(01).

[2] Zhang Hui, Shi Lin. Digital economy:New power in the new era[J]. Journal of Beijing Jiaotong University (Social Science Edition), 2019, 18(02).

[3] Yang, Wenrui, Zhang Tong, Cai Kunlin, Gui Wenhao, Li Weidong. A comprehensive evaluation study on the development of China's provincial digital economy [C]//. 2021 (The 7th) National Student Statistical Modeling Competition Awarded Papers Collection (I). [publisher unknown],2021:57-104.

[4] Wang J, Zhu J, Luo X. Development level and evolution measurement of China's digital economy [J]. Research on Quantitative Economics and Technology Economy,2021,38(07).

[5] Tang Weibing, Fu Yuanhai, Wang Zhanxiang. Technological innovation, technology introduction and economic growth transformation [J]. Economic Research, 2014, 49(07):31-43.