Abstract: Digital consumption, as it contains enormous and enduring momentum, is a crucial part of China’s high-quality development of strategic emerging industries driven by the domestic demand market. The new generation information technology industry, for its rich technological content and strong linkage effects, takes a deciding role in strategic emerging industries. This paper comprehensively employs the data of listed companies and provincial data to measure the level of digital consumption in each province and the total factor productivity of the new generation of information technology enterprises, and systematically examines the impact of digital consumption development on the development of the new generation information technology industry. The study has found: 1) in recent years, China’s digital consumption level has shown a steady growth year by year; digital consumption has significantly contributed to the total factor productivity of China’s new generation information technology industry through local market scaling effect and the technological innovation network effect, and this conclusion still holds after a series of robustness tests. 2) Both the digitization of consumption content and the digitization of consumption mode bear positive impacts on the improvement of total factor productivity of enterprises, and the digitalization of consumption content weighs more. 3) The promotion effect of digital consumption on total factor productivity is more pronounced in non-state-owned enterprises and the eastern region. The research indicates that further development of digital consumption is crucial for promoting high-quality development of China’s new generation information technology industry.

Key words: digital consumption, the new generation information technology industry, total factor productivity