The economic impact of digitalization and the creation of digital products on the development of the state
Economic Annals-ХХI: Volume 193, Issue (9-10), Pages: 4-14
Citation information:
Dziatkovskii, A., Hryneuski, U., Dudov, A., & Krylova, A. (2021). The economic impact of digitalization and the creation of digital products on the development of the state. Economic Annals-XXI, 193(9-10), 4-14. doi: https://doi.org/10.21003/ea.V193-01
Anton Dziatkovskii
Co-Founder,
Platinum Software Development Company
67-170 Punane Str., Lasnamae Distr., Tallin, 13619, Estonia
founder@platinum.fund
ORCID ID: https://orcid.org/0000-0001-7408-3054
Uladzimir Hryneuski
Chief Content Marketing,
Platinum Software Development Company
67-170 Punane Str., Lasnamae Distr., Tallin, 13619, Estonia
vsvoboden@gmail.com
ORCID ID: https://orcid.org/0000-0002-8506-5131
Aleksandr Dudov
Business Development Manager,
Platinum Software Development Company
67-170 Punane Str., Lasnamae Distr., Tallin, 13619, Estonia
dudov.al16@gmail.com
ORCID ID: https://orcid.org/0000-0001-8918-1685
Aleksandra Krylova
Chief Human Resources Officer,
Platinum Software Development Company
67-170 Punane Str., Lasnamae Distr., Tallin, 13619, Estonia
krylova0608@gmail.com
ORCID ID: https://orcid.org/0000-0001-7303-5077
The economic impact of digitalization and the creation of digital products on the development of the state
Abstract. The main components of the development of the digital economy as the next stage in the formation of a modern model of the production, technological and social system of society based on the results of the Fourth Industrial Revolution are regulatory regulation, infrastructure, network security (cybersecurity), training of professionals and the formation of technological platforms. This is exactly what the function of the state in partnership with business should be aimed at, the implementation of which requires an appropriate investment policy. The government must continue to strengthen the digital foundations by attracting investment in scalable, smart, and secure infrastructure capable of accelerating the pace of digital development. When implementing an investment strategy, it is important to identify sources in the field of investment – public and private, whose shares should be regulated by a special program «Digital Economy» and pay attention not only to large businesses that are interested in developing all aspects of the digital economy but also to small investors who are mainly represented by Portfolio Investment. An important component is to encourage investment in digitalization. To do this, in the field of investment activity to ensure the support of investment projects, it is necessary to form general rules for creating and evaluating special investment regimes: a list of new approaches to obtaining tax benefits, reducing insurance premiums for both private investors and investment companies implementing various projects, the development of specific measures of state support in one of the following forms: providing benefits for project financing; provision of benefits for the payment of property tax and land tax; compensation of investor investments through various tax revenues from the investment project, stabilization of regulatory and tax conditions.
Scientific novelty. The article examines the digital economy as an emerging phenomenon of the annual increase in the share of the world economy, in comparison with the raw materials and commodity part of it. The article considers the latest technologies and their impact on the traditional economy of various countries of the world.
The purpose of the article is to study the basic principles of digitalization of the economy, which allow the digital economy to become a full-fledged part of the globalized world.
Keywords: Digital Economy; Digitalization; Emerging; Digital Product
JEL Classіfіcatіon: G11; G20; I15; I22; O10
Acknowledgements and Funding: The authors received no direct funding for this research.
Contribution: The authors contributed equally to this work.
Data Availability Statement: The dataset used is publicly available from the sources referred to in the paper.
DOI: https://doi.org/10.21003/ea.V193-01
References
- Frank, A. G., Mendes, G. H. S., Ayala, N. F., & Ghezzi, A. (2019). Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective. Technological Forecasting and Social Change, 141, 431-351.
https://doi.org/10.1016/j.techfore.2019.01.014 - Gobble, M. M. (2018). Digitalization, digitization, and innovation. Research-Technology Management, 61(4), 56-59.
https://doi.org/10.1080/08956308.2018.1471280 - Hensmans, M. (2021). How digital fantasy work induces organizational ideal reversal? Long term conditioning and enactment of digital transformation fantasies at a large alternative bank (1963-2019). Organization, 28(1), 132-163.
https://doi.org/10.1177%2F1350508420968185 - Karsten, M. M. V. (2021). Dislocated dialogue: an anthropological investigation of digitisation among professionals in fire safety. Organization, 28(1), 92-114.
https://doi.org/10.1177%2F1350508420961527 - Kolk, A., & Ciulli, F. (2020). The potential of sustainability-oriented digital platform multinationals: a comment on the transitions research agenda. Environmental Innovation and Societal Transitions, 34, 355-358.
https://doi.org/10.1016/j.eist.2019.12.008 - Lammi, I. J. (2021). Automating to control: the unexpected consequences of modern automated work delivery in practice. Organization, 28(1), 115-131.
https://doi.org/10.1177%2F1350508420968179 - Lokuge, S., Sedera, D., Grover, V., & Dongming, X. (2018). Organizational readiness for digital innovation: development and empirical calibration of a construct. Information & Management, 56(3), 445-461.
https://doi.org/10.1016/j.im.2018.09.001 - Maltseva, K., Fieseler, C., & Trittin-Ulbrich, H. (2019). The challenges of gamifying CSR communication. Corporate communications: An international journal, 24(1), 44-62.
https://doi.org/10.1108/CCIJ-09-2018-0092 - Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123, 642-656.
https://doi.org/10.1016/j.jbusres.2020.10.033 - Morgan-Thomas, A., Dessart, L., & Veloutsou, C. (2020). Digital ecosystem and consumer engagement: A socio-technical perspective. Journal of Business Research, 121, 713-723.
https://doi.org/10.1016/j.jbusres.2020.03.042 - Newlands, G. (2020). Algorithmic surveillance in the gig economy: the organization of work through lefebvrian conceived space. Organization Studies, 42(5), 719-737.
https://doi.org/10.1177/0170840620937900 - Oliveira, L., Fleury, A., & Fleury, M. T. (2021). Digital power: Value chain upgrading in an age of digitization. International Business Review, 30(6), 101850.
https://doi.org/10.1016/j.ibusrev.2021.101850 - Plesner, U., & Husted, E. (2020) Digital Organizing: Revisiting Themes in Organization Studies. London: Red Globe Press.
- Porter, M., & Heppelmann, J. (2015). How smart, conected products are transforming companies. Harvard Business Review, 114, 96-112.
https://hbr.org/2015/10/how-smart-connected-products-are-transforming-companies - Scherer, A. G., & Voegtlin, C. (2020). Corporate governance for responsible innovation: approaches to corporate governance and their implications for sustainable development. Academy of Management Perspectives, 34(2), 182-208.
https://doi.org/10.5465/amp.2017.0175 - Timberg, T., Harwell, D., & Romm, T. (2019, August 20). In accusing china of disinformation, twitter and facebook take on a role they.ve long rejected. The Seattle Times.
https://www.seattletimes.com/nation-world/after-twitter-and-facebook-blame-china-for-hong-kong-disinformation-government-defends-its-right-to-online-speech - Trittin, H., Fieseler, Ch., & Maltseva, K. (2019). The serious and the mundane: reflections on gamified CSR communication. Journal of Management Inquiry, 28(2), 141-144.
https://doi.org/10.1177/1056492618790920 - von Krogh, G. (2018). Artificial intelligence in organizations: new opportunities for phenomenon-based theorizing. Academy of Management Discoveries, 4(4), 404-409.
https://doi.org/10.5465/amd.2018.0084 - West, S. M. (2019). Data capitalism: redefining the logics of surveillance and privacy. Business & Society, 58(1), 20-41.
https://doi.org/10.1177%2F0007650317718185
Received 16.07.2021
Received in revised form 19.08.2021
Accepted 29.08.2021
Available online 19.10.2021