Abstract: Promoting the integrated development of the digital economy and the real economy and fully releasing the amplification, superposition, and multiplication of digital economy to the development of real economy are the important policy points to achieve the goal of high-quality economic development. In this context, matching the urban digital economy index from 2016 to 2019 released by H3C with the data of Shanghai and Shenzhen A-share entity listed companies, and empirically tests the impact of digital economy development on the innovation of entity enterprises. The results show that the development of digital economy significantly promotes the innovation of real enterprises, and the promotion effect on the substantive innovation of enterprises is greater than the strategic innovation. Further research finds that the development of digital economy mainly promotes the innovation of real enterprises through two channels: improving absorptive capacity of financing and easing financing constraints. The results of heterogeneity analysis show that the development of digital economy has a greater innovation-driven effect on entity enterprises that have achieved digital transformation and large-scale entity enterprises.