Abstract:Responding to the question of "how does the government intervene in the market through digital governance", this essay explores the mechanism of how the government intervenes in the market through digital governance and drives business model innovation and industrial cooperation. Using the single-case study method, the evolution of the new model of supply chain financing for small and medium-sized enterprises in the process of Dalian digital port construction is taken as a case. The authors interviewed the the departments involved and refined the interview data according to the path of "target-action-result". The conclusion are drawed as follows: First, digital governance is an important tool that serves the holistic governance theory and the new public service management theory. It is also a governance tool for the government to actively intervene in the market and drive industrial cooperation and model innovation. At the same time, it is a concrete practice that embeds with both the government and the market. Second, market players can cross the boundaries of governance by embedding technical authority into digital governance on the one hand. It can regard the government's digital governance as the core capability of business model innovation on the other hand. Therefore, the government needs to further explore the development path of industrial innovation driven by digital governance. At the same time, the government should give full play to the positive role of the needs of market players in building a digital government, and promote the deep integration of the government and the effective market.