ICT sector role and digital transformation factors in the regional economy in the context of public governance.

Abstract

Since 2018, Russia has been implementing a dynamic public strategy of digital transformation of the economy and the society at all management levels. Digital transformation is based on a wide penetration of the information and communication technologies and an increased share of this sector in the economy. The purpose of the article is to identify the factors which affect the development of the information and communication technologies sector in the regional economy, boost the digital transformation of the regional economic system with the public management tools. Methodologically, the research includes theoretical aspects in economic development, regional economy and public management, which are connected with the digital transformation. The methods of the research are a dialectic one, structural and logical analysis, expert evaluation method, econometric modeling. Scientific novelty of the research refers to the identification and justification of the factor interconnections between the ICT sector development and digital transformation processes in the regional economic system. The hypotheses about the impact of different factors of the digital transformation on the ICT sector development indicators in the regional economy are proposed and tested. These indicators characterizing the ICT sector development in the regional economy were chosen as the independent (manageable) variables to design the econometric models: the number of the employed in ICT sector; the amount of locally produced and shipped goods, works, services performed with the ICT sector companies’ own resources; ICT costs. The independent variables characterizing the factors of the digital transformation are defined under the hypothesis about the factors affecting the ICT sector development in the regional economy, with the evaluation method of the ICT Development Index and an expert approach. The findings of the empirical research show that the factors connected with the education digitalization both in the comprehensive, vocational and higher educational institutions are critically important for the ICT sector development and digital economy on the whole. Along with that, the development of the Internet mobile and wideband access infrastructure is an obligatory requirement for the digital transformation of the economy. This requires the public support measures as regards the infrastructure projects in this area. On the whole, the public policy should provide the favourable conditions which could, on the one hand, develop the ICT sector in the economy of the region, and, on the other hand, induce an increase in the consumption of the digital products and services by the business outside ICT sector, population and budget-dependent companies (health care, education, social services and population rights protection). Further scientific research is seen to be connected with the development of public measures aimed to impact the digital transformation in the economy of the region to boost the competitiveness of the economic entities in the region.

Keywords

digital economy, digital transformation, factors of digital transformation, regional economy, competitiveness of economy, information and communication technologies sector, ICT development index, public management, econometric modeling

For citation

Miroliubova T.V., Radionova M.V. ICT sector role and digital transformation factors in the regional economy in the context of public governance. Perm University Herald. Economy, 2020, vol. 15, no. 2, pp. 253–270. DOI 10.17072/1994-9960-2020-2-253-270

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