Abstract
A simple prognostic method was applied to estimate the percentage ratio of the digital economy in Russia’s GDP relying on technology solutions expenditure and sectoral investment. The research indicates a significant impact of Russia’s digital sector on innovation development in B2B, B2G, and B2C segments. The prognostic analysis shows the extension of on-line education, social networking, e-commerce, private and corporate banking, and end-to-end technology solutions in manufacturing. The findings point at the opportunity for the sectoral investment extension and steady annual growth 7-8 % in the next few years. Due to requirements on updating the technological solutions in the related public services, the digital sphere can support the annual growth in the national economy by 1,0-1,2 % until 2024. Respectively the digital economy in Russia will be growing faster the world's average to provide the sector’s contribution of 8,0-8,1 % in GDP by 2024. The findings show the digital platforms are becoming a driver for innovation development integrating the production process, cloud resources, data analysis, and e-learning services. The research contains hints on improving the research efficiency and winning the talent battle that promises to improve the country’s global innovation and economic ranks.
Highlights
Despite a relatively high rank of the digital economy in its respective sectors, e.g., Internet penetration, an extension of the public on-line services, and the implementation of large-scale digital projects, the sectors’ contribution to the Russian economy is significantly smaller in comparison with the advanced countries
Conducting the digital transformation processes, Russia lags behind the leading countries in terms of competitiveness and human capital quality
Will the digital transformation assist in becoming Russia, a global leader in innovation development? A number of issues to be resolved on the path of digital transformation
Summary
Despite a relatively high rank of the digital economy in its respective sectors, e.g., Internet penetration, an extension of the public on-line services, and the implementation of large-scale digital projects, the sectors’ contribution to the Russian economy is significantly smaller in comparison with the advanced countries. Conducting the digital transformation processes, Russia lags behind the leading countries in terms of competitiveness and human capital quality. The digital sphere contribution is approximately 3-3,6 % of GDP, while 7-12% of GDP in the leader countries. The country has fallen behind the leaders of innovative development, such as Switzerland. A leader in the Global Innovation Index ranking, Switzerland has been taking the first rank for the last several years with 67,2 points in 2019, while Russia has 49 ranks with 37,6 points. By 2024, the Russian Federation government is going to implement the Digital Economic program and raise investments into the sector by 3-3,5 times (The World Bank, 2018)
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