Program approach in digital economy development: Republic of Korea and Russia

Abstract

Aim. The presented study aims to comparatively analyze the use of the program approach as a tool for digital economy development in the Republic of Korea and Russia; to provide recommendations for the formation of state policy in Russia based on the experience of the Republic of Korea as a global leader in digital transformation.Tasks. The authors determine the place of the Republic of Korea and Russia in global rankings reflecting the level of digital economy development; analyze the historical features of innovative development in these countries; substantiate the applicability of the program approach for stimulating digital transformation; provide recommendations for Russia based on foreign experience.Methods. This study uses general and special methods, including historical analysis, comparative analysis, systematization and generalization, content analysis. The methodological basis includes strategic and policy documents of the Republic of Korea and Russia, international digital economy indices.Results. According to international rankings, the Republic of Korea is one of the global leaders in digital transformation thanks to the government strategy to stimulate the economy using programm tools and budget support. For Russia, the transition to the digital economy is one of the development priorities reflected in strategic and program documents. Despite the different historical conditions of development, the experience of the Republic of Korea can be applied to Russia as long as it is adapted to the country’s historical and cultural features.Conclusions. The experience of digitalization in the Republic of Korea can be relevant to Russia with allowance for national features. This involves reforming patent policy, stimulating innovation activity of small and medium enterprises, implementing programs for the development of information and communication technologies (ICT), infrastructure, and ecosystem of the digital economy, applying a catch-up model of innovative development while building up the country’s technological potential in key sectors of the economy.