Network economy as a socio-economic model

Abstract

The paper analyzes fundamental changes in the economy that take place nowadays as a result of digitalization and globalization of economic relations. The research hypothesis of the paper is a suggestion of the crucial role of transformation processes which can be compared to the Industrial Revolution. The research methods are: historical analysis, institutional analysis as well as systems analysis. The author tries to separate technological, economic and institutional dimensions of economic development. These dimensions center around such concepts as “type of the economy” (technological dimension), “socio-economic model” (economic dimension) and “mode of production” (institutional dimension). The author shows that the industrial type of economy corresponds to the market economic system that can develop under different modes of production — capitalism and statism. Likewise, the digital type of economy corresponds to the network economic system, the basis features being division of labour, direct long-term cooperation and information links between economic agents, trust-based relationships and interdependence. Special emphasis is made on transformation of basic institutions of the market economy as well as transition to the network economy. The author shows that such basic laws of the market economy as pricing, distribution of economic surplus and control over economic activity are no longer valid.