The impact of digital transformation on the economy: Technological innovation and efficiency Shostak Liudmyla1,*, Goi Vasyl2, Timchenko Olha3, Yastrubetska Lesya4, Derhaliuk Marta5 1Department of Economics and Trade, Faculty of Economics and Management, Lesya Ukrainka Volyn National University, Lutsk, Ukraine 2Department of Economics and Marketing, O.M. Beketov National University of Urban Economy in Kharkiv, Kharkiv, Ukraine 3Department of Global Economics, National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine 4Department of Finance, Money Circulation and Credit, Ivan Franko National University of Lviv, Lviv, Ukraine 5Department of Economics and Entrepreneurship, Faculty of Management and Marketing, National Technica University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”, Kyiv, Ukraine *Corresponding author: lshostak14@gmail.com (ORCID ID: 0000-0001-8786-9582)
Online published on 15 July, 2024. Abstract The investigation into the evolution of the digital economy has yielded profound insights into its fundamental nature, the pivotal drivers guiding its advancement, and the trajectories characterizing the metamorphosis of economic operations within organizations. The outcomes of this inquiry are primed to underpin the effectiveness, calibre, and dependability of information-driven and analytical underpinnings, indispensable for informed managerial judgments geared towards nurturing the inventive potential inherent in the digital economy. Furthermore, these findings address the impediments that curtail seamless digital transformation. Among the preeminent findings engendering novelty in this research, the subsequent elements stand out: the formulation of a comprehensive framework for the delineation and taxonomy of economic activities within the digital economy domain, encompassing both a classification schema for economic pursuits intrinsic to the digital sector and another for economic endeavours facilitated by the integration of digital technologies. A comprehensive array of metrics has been systematically devised to assess the evolution of the digital economy. This framework encompasses indicators derived from information and communication technology (ICT) statistics, national economic accounts, fixed asset investments, and foreign trade, as well as indicators custom-developed in consonance with the proposed taxonomy of economic pursuits within the digital economy. This classification system comprises five distinct blocks, each comprising discrete sets of indicators: those about the ICT sector, the digital sector, organizational outlays on digital technologies, digital proficiency of the workforce, and a holistic gauge of the digital economy. An intricate methodology has been formulated to quantitatively evaluate the ICT sector’s state, progression, and competitive standing. This methodological construct encompasses algorithms for the computation of physical quantities of gross value added and fixed capital investment segregated by the nature of economic undertakings associated with the production of ICT goods and provisioning ICT services. Also included are computations for the index of fixed capital formation rate, alongside indicators appraising the extent of the economy’s engagement with international trade concerning diverse digital products. Highlights • The study underscores the transformative impact of digital technologies on the global economic landscape and their pivotal role in advancing progress towards the United Nations’ Sustainable Development Goals (SDGs) by 2030. It emphasizes the potential of digital technologies to amplify economic development, improve the quality of goods and services, enhance energy efficiency, and create new employment opportunities. • The research aims to comprehensively investigate the drivers shaping the evolution of the digital economy, focusing on technological innovation and evaluating their effectiveness. It articulates objectives such as providing clarity to the conceptual realm of the digital economy, formulating a comprehensive classification framework, identifying influential factors, and conducting a meticulous analysis of the ICT sector. Top Keywords Capital expenditures, Digital economy, Digital platforms, Digital technologies, Electronic services, Technological improvements, ICT infrastructure. Top |