Abstract: This study extends traditional growth accounting by incorporating data elements, developing a theoretical framework that examines how distortions in capital, labor, and data factor allocations affect total output. Our model specifically analyzes the relationships between resource misallocation, digital new quality productivity development, and economic performance. Using 2011-2016 China Tax Survey data, we measure resource misallocation and digital new quality productivity levels across three key sectors: (1) scientific research and technology services, (2) information technology services, and (3) selected high-end manufacturing industries. Our methodology decomposes output contributions while estimating single-factor distortion effects, output losses, and potential gains. Key findings reveal: First, capital demonstrates persistent over-allocation and volatility, while labor and data allocations remain relatively stable across all sectors. Second, digital new quality productivity exhibits instability, initially showing minor fluctuations before significant variations, with particularly strong performance in digitally transformed manufacturing sectors compared to core digital industries. Third, China's growth primarily stems from digital new quality productivity gains rather than factor inputs, though substantial negative impacts from factor distortions outweigh these productivity benefits. Fourth, factor misallocation causes annual output losses of 54.54%-66.09%, with potential gains of 119.98%-194.90% achievable through distortion mitigation. Notably, capital, labor, and data factors (controlling for externalities) significantly influence digital new quality productivity development. These results carry important policy implications for China's digital transformation, suggesting the need for: (1) factor market price mechanism reforms tailored to industry-specific conditions, (2) strategic development of digital new quality productivity, and (3) focused cultivation of emerging and future industries. Our findings particularly highlight the critical need to address factor market distortions that currently constrain productivity growth.