Digital Life of Russian Megapolises: Model. Dynamics. Cases.

Abstract

The paper introduces the Digital Life Index which provides a quantitative measurement of the progress of secondary digitalization in the Russian cities, covering the key aspects of modern urban life, such as transportation, finance, retail, healthcare, education, media, and administration. A separate measurement of the development of supply, and helps to reveal the gaps between them, mapping out areas of possible action for businesses and administrations. The study focused on 15 Russian cities with populations of over 1 million people; the measurements were carried out in two waves: in the end of the years 2014 and 2015. The current situation in Russia is characterised by a significant difference in the economic opportunities of the capital (Moscow) and most of the other regions, whose average per capita GRP is four times less than in Moscow. Certain disparities can be observed in the penetration of digital technologies: in Moscow more than 90% of the population regularly use the Internet, while in Perm and Volgograd—just over 70%. At the same time, Russian millionaire cities completed the primary digitalization stage in 2015, reaching a penetration rate of digital infrastructure that allows expecting for manifestations of significant positive network effects and the creation of holistic multidimensional ecosystems in the digital economy. The study shows that the economic resources of the regions largely determine the development of digital supply, but have very little effect on the digital demand. The latter, however, depends to a large degree on the perceived quality of life of the region. Secondary digitalization of major Russian cities is developing very rapidly. The three leading cities stayed the same for two years —Ekaterinburg, St. Petersburg and Moscow; Kazan and Novosibirsk rank fourth and fifth, respectively, having left Perm, Krasnoyarsk, and Samara behind. Volgograd and Voronezh remained at the bottom of the rating, but they have changed places between the 2014 and 2015 waves. Rostov-on-Don is currently the most dynamically developing city. The growth of digitalization is mainly due to the growing demand, whose average index for the year has increased by almost twofold, while the supply at the end of 2015 was even slightly lower than a year earlier.