Factors and conditions of digital transformation of the economy at the state and regional levels

Abstract

Trends in the digital transformation of Ukraine’s economy in modern conditions are studied in this scientific publication. The purpose of the research is to study current trends in the digital transformation of Ukraine’s economy and determine areas for its support in ensuring the socioeconomic development of the regions of the state. The structure of digital business transformation is determined, which includes digital data, digital infrastructure, digital models, and the digital economy. At the same time, an important task of the digital economy is to help improve the living standards of the population through the availability and quality of goods and services produced using modern digital technologies. The principles of digitalization are defined, the observance of which serves as a basis for the creation and realization of advantages in the process of using digital technologies. Such principles include ensuring equal access to digital technologies for all citizens, promoting the development of the information society and the media, building a mechanism for economic growth by increasing efficiency and competitiveness via the use of digital technologies, personal data protection and information security, and others. Factors in the development of the digital economy – which must be considered in two groups: external and internal – are investigated in the article. Factors of the development of the digital economy have both positive and negative roles in ensuring the development of information and communication technologies, intellectual production, digitalization of the economy, etc. Such factors are complementary and interdependent. The level of regulatory and legal framework for digitalization is an important factor in supporting the development of the digital economy at both the state and regional levels. However, the regulatory and legal framework for regulating the process of building the digital economy in Ukraine is underdeveloped – in particular, the legislative coverage of issues related to the digital economy is extremely superficial. An important prerequisite for the development of Ukraine’s digital economy and the integration of the digital market into the single digital space of the European Union is the introduction of e-government. The creation of the Action online public services portal has become one of the most popular activities of the government in the field of digital environment. The proliferation of digital platforms is another important factor in the digital economy. Digital platforms act as mechanisms that allow different participants in economic relations to interact online. In the business environment, the digital age means that many dynamic digital platforms are actively developing and are a strategic resource for maintaining competitive advantage during constant change. The level of development of the digital economy also depends on the differentiation of incomes between individual regions. Ukraine’s economy is characterized by inequality in the level of average wages and unemployment in the regions of the country. The development of the digital economy in Ukraine also depends on the possibility of broadband Internet access. This is a problematic issue today, as there is a digital divide where the availability of broadband access differs markedly in large cities and small villages. An important condition for the development of the digital economy is the formation of a modern labor market when increasing demands on education and skills, changing the rules of hiring, and increasing the flexibility and mobility of staff. Thus, accelerating the processes of the digital transformation of the economy in Ukraine requires the formation of appropriate measures. Such support measures should include: improving the regulatory framework to intensify the process of digitalization of the economy, promoting digital technologies among businesses, creating government programs to support public sector and business cooperation in digital technologies, building digital infrastructure and expanding digital platforms in all regions to address digital inequality among Ukrainian citizens, and others.