On the relationship between digitalization and the national smart economy model to achieve strategies of innovative progress

Abstract

Modern economic processes are influenced by the digitalization and globalization of production processes. The consequence of this has been the emergence of the concept of a smart economy, which is actively implemented in the advanced countries of the world. The article aims to analyze the relationship between digitalization and the national model of a smart economy to achieve the strategies of the innovation process. The main methods of research were general scientific (analysis, synthesis) and special methods of economic knowledge (forecasting, methods of analytical work organization, collection of materials, and their processing). The results define the prospects for the development of a smart economy (primarily, the Internet of Things), determine the level of digitalization of the economy of individual countries of Central and Eastern Europe, attempt to form a model of development and interaction of digitalization and smart economy. A special role in today's production processes is played by the Internet of Things (IIoT), the use of which may have powerful prospects for global GDP. At the same time, the countries of the Eastern European region are experiencing difficulties on this path, as there is a lack of specialists at the appropriate level, and the educational facilities are not able to cover this deficit. It is indicated that further digitalization of the economy will have an impact on the growth of export orientation and competitiveness of the economies of the region (based on the example of Bulgaria). An important element of this process is to encourage enterprises to modernize their production base, adapting business models to modern digital transformations. In conclusion, it is concluded that the Central-Eastern European region lacks investments in the smart economy, which can be remedied by deepening the implementation of national and regional strategies and the cooperation of the authorities, businesses, and academia.