The Impact of Digitalization on the Formation of Human Capital at the Regional Level

Olga Nadezhina,Ekaterina Avduevskaya,Olga Zaborovskaia

doi:10.3390/joitmc6040184

Abstract

Human capital becomes the most competitive and unique resource in the modern context of development of high-tech industries and formation of the digital economy. The ongoing digitalization processes have an impact on the formation and development of human capital. The aim of this work is to analyze the influence of digitalization factors on human capital in the regions of the Russian Federation. Based on statistical data from the State statistics service of the Russian Federation, the authors collected data for calculating the Index of conditions for the formation and development of human capital (CFDHC Index) for 82 regions and 34 factors that characterize the development of digitalization in Russia for the period from 2014 to 2018. The authors construct a multivariate regression using the ordinary least squares (OLS) estimation for describing the relationship between the Index and digitalization factors. With allowance for the individual effects of the regions of the Russian Federation, models with random and fixed effects were built. The results of the regression analysis confirmed the hypothesis that to form and develop human capital in the regions, measures should be taken aiming at developing digital infrastructure, reducing digital inequality, supporting higher education and research institutes, developing electronic services to provide public and municipal services.

Highlights

IntroductionTransition to the fifth technological order in the early 60s of the 20th century, accompanied by the widespread dissemination of information technologies that allowed automating production and business processes may be considered the beginning of the economy and society transformation
The past few decades have been characterized by the rapid development of society
Based on the results of the model interpretation, we may conclude that conditions for the formation and development of human capital in the regions of the Russian Federation are positively affected, first, by the infrastructure created within the framework of the digital economy, expressed in the accessibility of the Internet to the public

Summary

Introduction

Transition to the fifth technological order in the early 60s of the 20th century, accompanied by the widespread dissemination of information technologies that allowed automating production and business processes may be considered the beginning of the economy and society transformation. These changes were the first prerequisite for the society transition to a new stage of development. The second prerequisite was the ubiquity of the Internet and mobile communications in the mid-90s, which naturally influenced further modernization of production and business processes [1]. Traditional economic processes are changing in the modern market environment. The fact that the current information, digital technologies, and innovations used in production, distribution, exchange, and consumption have become important in the process of increasing competitiveness was one of the prerequisites for these changes [2]

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Conclusion