Will Russia become a blueprint for emerging nations’ high-tech reforms? evidence from a 26-countries dataset

Abstract

The central question of this study concerns the emergence of the Russian development model over the past decade. It highlights that this development model could be a blueprint for other emerging markets. Russia is one of the leaders of the Fourth Industrial Revolution, having improved its standing in international ratings for quality of life, human development, sustainable development, innovation, and high technology. Russia's experience can be helpful to developing countries. We study and evaluate innovation in a digital business society amid technological turmoil competing with artificial intelligence. We focus on the digital competitiveness index, the density of robots in industry, and unemployment, thereby building a novel comprehensive dataset of the economy's systemic socioeconomic and technological development under the conditions of the Fourth Industrial Revolution. We draw attention to Russia's new business environment that exhibits valuable specifics (e.g., emerging institutions and imperfect competition as clouds in the business landscape) shaped by its current transitional character. We estimate that technological progress will ensure digitalization, the prevention of extended unemployment, and the achievement of full-scale automation. Russia's innovation policy has substantial advantages for emerging market settings. This study also shows that institutionalizing the new approach provides enduring digital economy advantages for emerging markets, including effectiveness, progressiveness, and sustainability.