New Opportunities for the Digital Economy: the Implementation of an Effective State Innovation Policy

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 4, Pages: 1321-1325

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal web link: http://www.jett.dormaj.com

https://doi.org/10.47277/JETT/8(4)1325

New Opportunities for the Digital Economy: the

Implementation of an Effective State Innovation

Policy

Andrey Petrovich Garnov *, Victoria Yuryevna Garnova , Larisa Vladimirovna Shabaltina ,

Ildar Rustamovich Begishev , Liya Vitalievna Panferova

Plekhanov Russian University of Economics, Russian Federation

Kazan Innovative University named after V.G. Timiryasov (IEML), Russian Federation

Ulianov Chuvash State University, Russian Federation

Received: 06/01/2020

Accepted: 13/04/2020

Published: 20/09/2020

Abstract

Digital transformation is most often considered in theory and practice without taking into account the peculiarities of economic

development, the action of economic trends, political and economic laws. The need to connect the needs of the population with the

capabilities of the digital economy as a new technology is obvious, but the fact that digital transformation contributes, on the one hand,

to development and progress, and on the other, the emergence of negative processes, the danger of which makes its introduction

ambiguous, is also beyond doubt. The study reveals new opportunities for the digital economy of Russia in the context of the

implementation of the Strategy for the Development of the Information Society. The article reveals the experience of leading countries

that have achieved the greatest results in the development and implementation of effective state innovation economic policies; and how

it can be used in shaping Russian regional innovation policies. The authors draw attention to the factors limiting the country's economic

growth and ways to overcome this restriction, and propose to form a new mobilization model for managing the digital economy,

developed on the basis of domestic digital technologies, transparent processes for their implementation.

Keywords: Digital economy, Information society, Development strategy, Economic growth, Innovative development, Digital

technologies, Mobilization model

Introduction¹

2 Literature review

The high level of development of information technologies

The concept of the digital economy has many

interpretations. The term "digital economy" was first used back

in 1995 in the Don Tapscott’s book "Digital economy: promise

and danger in the age of network exploration". Currently, the

essence of the digital economy is being considered

simplistically ("smart cities", "smart homes", "artificial

intelligence", in the field of education and healthcare - the

creation of a service based on digital technologies and cost

savings), believing that robots can replace humans. Officially,

the beginning of the "shift" to the digital government in the

domestic practice of public administration is associated with

the adoption of the "Strategy for the Development of the

Information Society in the Russian Federation for 2017–2030,"

which, “in order to provide conditions for the formation of a

knowledge society in the Russian Federation, is supposed to be

achieved through the shift from e-government to digital one”,

and the national program “Digital Economy of the Russian

in the modern economy has led to a change in the institutional

conditions for the creation of digital assets. Against the

background of unconditional improvement in the performance

of almost all areas of the economy in which digital assets are

increasingly used, therefore, a number of problems arise that

need to be resolved in a timely manner. Nowadays, Russia also

faces the challenge of creating a new management model based

on digital technologies developed by domestic scientists and

practitioners, as well as ensuring transparent processes for their

implementation (1-3). At the same time, according to leading

economists, constructing a new economic model while

maintaining the existing type of economic development is not

possible, since there are growth limits due to the limitations of

traditional factors of production. This limitation is caused not

only by the “flight of capital”, “brain drain”, the export of raw

materials abroad, but, first of all, by the lack of own financial

resources necessary for investing. Experts are trying to

overcome these constraints by attracting foreign investment,

which, in our opinion, cannot ensure the creation of our own

Federation” (2018

- 2024)”, aimed at “improving the

availability and quality of goods and services produced in the

digital economy using modern digital technologies, the degree

of education and digital literacy, the quality of public services

for citizens, as well as enhancing security both within the

country and abroad” (20).

"breakthrough" innovations and technologies, and enter the top

five strongest economies in the world (4-9).

Corresponding author: Andrey Petrovich Garnov, Plekhanov Russian University of Economics, Russian Federation. E-mail:

prodanova-00@mail.ru

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Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 4, Pages: 1321-1325

Figure 1: The world rating of digital competitiveness on a 100-point scale, compiled annually by the Swiss International Institute for Management and

Development in Lausanne (positions 1-16)

Figure 2: The world rating of digital competitiveness on a 100-point scale, compiled annually by the Swiss International Institute for Management and

Development in Lausanne (positions 31-45)

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Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 4, Pages: 1321-1325

important. The absence of a depreciation fund and the law on

limiting accelerated depreciation, contributes to its inclusion in

costs, which significantly “accelerates” the production price,

and capital assets necessary for not only development, but also

for functioning, are withdrawn from economic turnover. Not

only all depreciation deductions, but also most of the

investments themselves, the deficit of which is increasing in the

country, are “excluded” and “consumed” from active

production turnover.

Materials and methods

The main research toolkit used in the work is a system

analysis. To study theoretical and practical materials, empirical

research methods, principles of formal logic, synthesis and

analysis of the works of Russian and foreign scientists were

applied.

Results

At present, Russia is not among the leaders in the

Of particular interest to science and economic practice are

the laws of rational use of the labor force of society. During the

period of creation and expansion of the digital economy,

society is in dire need, but not yet ready for decisive changes in

the use of labor. Innovative development leads to great

difficulties in the redistribution of labor between sectors,

regions and sectors of the economy, where extremely diverse

interests of various economic entities are intertwined (17).

Similar problems have occurred in different periods in other

countries. The 40-year history of reforms in China allows us to

speak about the accumulated experience and the possibility of

studying it for our country. This experience shows that the

active role of the state and its political openness, stimulating

the development of science, patent relations with enterprises,

and new elements in the education system have enabled the

country, without deviating from its strategic goals, to

modernize the old economic model into a model based on

innovation. It was called the “New Normality”, where the main

development of the digital economy. According to the Rosstat,

only a few percent of those employed in the economy, worked

in the profession related to information and communication

technologies, 36% of which are under the age of 30. For

example, in Germany, about 10% of the population is employed

in high-tech industries (10-16). Nevertheless, the share of the

digital economy in the country's GDP in recent years grew to

.8 trillion rubles and reached 2.22%. The authorities,

apparently realizing the national importance of these

objectives, are trying to mobilize resources on a national scale

to solve them. The Global Digital Competitiveness Ranking,

compiled annually by the Swiss International Institute for

Management and Development in Lausanne, gives an idea of

the position of the Russian Federation on the world stage on the

implementation of digital technologies (fig.1, 2). In 2019,

Russia rose from 40th to 38th place in the ranking of digital

competitiveness of large economies, compiled by the Swiss

business school IMD (Institute for Management Development).

The neighbors of the Russian Federation by rating this year

were the Czech Republic and Saudi Arabia. A total of 63

countries were rated. IMD assessment is based on 50 criteria,

bundled into three main groups: knowledge, technology and

readiness for the future. Quantitative criteria account for two-

thirds of their total weight, and one-third for polls. 19 out of 50

criteria are unique, the rest are borrowed from the overall

competitiveness rating of IMD. The five digital leaders

remained unchanged, these are: the USA, Singapore, Sweden,

Denmark and Switzerland.

The volume of the US digital economy is 11% of GDP.

They were able to put on the stream the production of

innovations and their successful implementation in many areas

of activity. Meanwhile, both the state and private companies are

actively investing in advanced technologies. The experience of

China, which economy also occupies an increasingly

significant place in the digital economy of the world, is

interesting. Thus, recently, the share of the main sectors of the

digital economy in China has remained at the level of 6-7% of

GDP. It is forecasted, that, by the end of 2020, the volume of

China's digital economy will exceed 32 trillion yuan and will

amount to 35% of GDP, and by 2030, its share in GDP will

exceed 50%. At the same time, China ranks third in the world

in terms of venture capital in various sectors of the economy

“

norm” is the use of Chinese science to improve lives of most

people.

China's state strategy is designed primarily to increase

welfare, and then to increase profits. China's citizen-oriented

social system contributes to social progress. This is confirmed

by the actions of recent years: tax rates have been reduced,

average wages have been raised several times, and investments

in education, healthcare, and culture have been expanded. A

program on facilitating the transformation of science and

technology into productive forces was adopted in 2016. In it,

the level of education in the country is the main factor in

increasing its competitiveness. According to experts, China has

reached the sixth technological stage earlier than other

countries (18, 19).

Conclusion

Analysis of the experience of countries that actively use

digital transformation elements reveals not only competitive

advantages in development, but also problems and

disadvantages of these processes that should be taken into

account when implementing them in the Russian Federation.

To make it happen, not in words, but in reality, digital

technologies must "serve" the entire society, but not its

individual groups, estates, and clans. It is clear that the solution

of economic problems with the help of digital technologies

cannot by itself eliminate the disproportion of economic

development, that is, to harmonize socially necessary needs and

production possibilities (20-25). But information technologies

are able to create technological support for solving targets.

Currently, the real digital economy is being superseded by a

virtual one based on the spontaneous use of digital

technologies. The development of the "mobilization digital

economy" requires the creation of a single platform of rules that

guarantee the security and sovereignty of Russia. We do not

have a mobilization model yet, threats are escalating and the

time of missed opportunities is working for our competitors.

These strategic tasks should come to the fore, form mechanisms

for the transition from stage to stage, and link commodity-

money relations with planning based on an interdisciplinary

research and scientific approach. In each of the constituent

(after the United States and Great Britain). In order to further

stimulate this process, the Chinese government has unveiled a

strategy for the development of artificial intelligence

technologies, which aims to accelerate the development of not

only artificial intelligence, but also the introduction of other

relevant end-to-end digital technologies (Big data, quantum

computing, industrial robotics, virtual and augmented reality

technologies, etc.). China is ahead of everyone in the number

of patents in the field of artificial intelligence – it accounts for

3% of all patents in this field, the US – 27%, Japan – 6%,

Russia – less than 1%.

Threats of regular technological accidents and the

disintegration of the entire production base of the economy

pose new problems of mechanisms for updating production

factors. Among them, the depreciation fund is the most

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2020, Volume 8, Issue 4, Pages: 1321-1325

entities of the Russian Federation, the process of innovative

development has its own characteristics, determined by the

sectorial structure of the economy, the level of scientific and

technological development, human potential in the field of

science and innovation, and other specific features. At a

conference in Dzerzhinsk with the involvement of

representatives of the Ministry of digital development,

communications and mass communications of the Russian

Federation, and then at the conference "Digital transformation

of regions", the "Guidelines for the development and

implementation of programs for digital development of the

economy of the Russian Federation subjects" were approved.

According to these recommendations, regional programs will

be considered as components of the Federal program "Digital

economy of the Russian Federation". They should consist of

projects corresponding to the directions of the federal program.

In addition, regional programs may contain an additional

section aimed at digitally transforming priority sectors of the

economy and social sphere of a particular region by introducing

digital technologies and platform solutions. This favourably

distinguishes regional programs from the Federal ones, because

regions will have the opportunity to develop projects in the real

sector of the economy, which is not stipulated in the federal

program. Organizational and technological solutions to create

an effective infrastructure for the digital economy encounter

contradictions that slow down integration processes. Innovative

transformations, so far, serve a limited number of individuals,

although their results should be delivered to the whole society.

Large-scale transformations can only be achieved by the state

acting on behalf of and in the interests of the entire society.

Moving to a new mobilization model involves using not only

modern ("fashionable") concepts, but also the knowledge that

was formed on the basis of economic laws discovered by the

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Authors are aware of, and comply with, best practice in

publication ethics specifically with regard to authorship

(avoidance of guest authorship), dual submission, manipulation

of figures, competing interests and compliance with policies on

research ethics. Authors adhere to publication requirements

that submitted work is original and has not been published

elsewhere in any language.

Competing interests

The authors declare that there is no conflict of interest that

would prejudice the impartiality of this scientific work.

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