Innovation and entrepreneurship is an effective choice to shape a new engine of development. As a new development form, the digital economy can provide new opportunities for enhancing the entrepreneurial vitality of the region. First, based on the panel data of selected 30 provinces in China from 2010 to 2020, this paper constructs the fixed-effects model, mediation model, and threshold model. Second, the models are applied to analyze the impacts and mechanism of the digital economy on entrepreneurial vitality from the perspectives of the labor and data factors. Third, this paper explores the boundary effects of intellectual property protection. The study shows that: 1) The development of digital economy has a significant positive effect on the entrepreneurial vitality, among which it improves the entrepreneurial vitality in the two aspects of Internet application and digital finance, while the role of the basic dimension of informatization is not obvious. 2) Digital economy can promote entrepreneurial vitality through two paths: “Labor factor allocation” and “data factor utilization”. 3) In the southeast half of the “Hu Huanyong Line”, the digital economy has a significant impact on the entrepreneurial vitality. 4) As an important institutional guarantee, intellectual property protection plays a threshold role in regulating the relationship between digital economy and entrepreneurial vitality, and can play the maximum effect when its level is in the optimal range. Accordingly, to stimulate the entrepreneurial vitality, all regions need to further improve the information infrastructure and the application level of digital technology, and optimize the allocation of regional elements. Besides, based on location characteristics, adopt the different strategy of independent innovation, and cooperation to create an entrepreneurial environment that is compatible with the development level of the digital economy.