From data factors to new quality productivity: Spatial and governance pathways of China’s industrial transformation

Abstract New quality productivity represents an advanced form of industrial productivity driven by advanced technology, efficiency, and quality. In China, industrial upgrading remains constrained by reliance on traditional production paths and an uneven digital transformation. This study examines how data elements, emerging as a new factor of production, affect the development of new quality productivity across 30 Chinese provinces from 2013 to 2013. Using two-way fixed effects, panel thresholds, and the spatial Durbin model, the analysis shows that data elements significantly improve industrial productivity, with effects strengthening once government attention exceeds a critical threshold. Strong spatial spillovers reflect that data-driven development in one province stimulates productivity improvements in neighbouring regions. These findings indicate the intertwined roles of governance, spatial, and technology connectivity in shaping industrial transformation. This study offers new evidence for promoting inclusive, high-quality, and sustainable growth through digital capability building and policy coordination in the context of China’s industrial modernization.