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Diffusion Of Innovations As A Key Driver Of The Digital Economy Development

Author

Listed:
  • Maxim Polyakov

    (National University of Water and Environmental Engineering, Ukraine)

  • NataliÑ–a Kovshun

    (National University of Water and Environmental Engineering, Ukraine)

Abstract

The research objective includes detailing of the essence and structural changes of the digital economy (DE) at the national level; an explanation of the features of digital innovations; the role substantiation of diffusion of innovations (DI) as a key driver for DE development. The research methodology is based on: structural, institutional, historical, comparative, functional analysis, formalization method. The need to achieve all-encompassing digitalization nature and the systematic use of digital technologies, as well as the transition to digital models of organization through the diffusion of technologies, is taken into account. The research results are the detailing of the essence and structural features of DE. DE is considered as a new type of economy, characterized by the widespread adoption of digital technologies, cyber-physical systems, intelligent solutions, network technologies. The DE nature is revealed from the position of several approaches: technological; structural; component-resource; functional. The DE features (network nature, a new type of entrepreneurship, a new class of specialists, new institutions, etc.) are highlighted, as well as the negative consequences of the transition to such an economy; overcoming of these negative consequences requires smart policy with a focus on productivity growth, structural changes and growth incentives. The DE structure, including parts of the Internet economy (e-Commerce, e-Health, e-Education, e-Banking, etc.) and new forms of providing various services, is characterized. The IT sector growth is indicated as the DE "core", where new jobs, infrastructure, cost are created, and the technology business is developed. The structural proportions of DE are largely determined by technological trends (on-demand economy, sharing economy, Internet of Things, etc.). Digital platforms as new intermediary mechanisms, as well as the Big Data market, are one of the key structural components of DE. The subject and features of digital innovations are highlighted. On this basis, the DI role in the DE development is substantiated, taking into account the provision of all-encompassing digitalization nature, stimulation of innovations, ensuring the benefits and economic growth, as well as the creation of economies of scale, chain and cumulative effects. Practical recommendations on the intensification of DI processes in the context of DE building include: targeted government support that concerns the IT and other sectors; establishment of technology transfer and commercialization centers, technology platforms and technology leadership programs; quality improvement of education and training; infrastructure role expanding of universities; development of research, innovation, entrepreneurial networks, professional communities, industry associations. In this context, it is necessary to strengthen support for small and medium-sized innovative businesses that should become a provider of new technologies. It is advisable to create portals for oriented R&D and adoption of technologies; knowledge management platforms during technology transfer process; industry knowledge bases; portals for experts work activity management for project evaluation. Value/originality. The article details the essence and reveals the structural features of DE, describes the specifics of digital innovations, as well as presents DI as a key driver for the development of such an economy.

Suggested Citation

  • Maxim Polyakov & NataliÑ–a Kovshun, 2021. "Diffusion Of Innovations As A Key Driver Of The Digital Economy Development," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 7(1).
  • Handle: RePEc:bal:journl:2256-0742:2021:7:1:10
    DOI: 10.30525/2256-0742/2021-7-1-84-92
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    References listed on IDEAS

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    1. Rudra P. Pradhan & Mak B. Arvin & Mahendhiran Nair & Sara E. Bennett & John H. Hall, 2019. "The information revolution, innovation diffusion and economic growth: an examination of causal links in European countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1529-1563, May.
    2. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.
    3. Ramzi El-Haddadeh, 0. "Digital Innovation Dynamics Influence on Organisational Adoption: The Case of Cloud Computing Services," Information Systems Frontiers, Springer, vol. 0, pages 1-15.
    4. Njoh, Ambe J., 2018. "The relationship between modern Information and Communications Technologies (ICTs) and development in Africa," Utilities Policy, Elsevier, vol. 50(C), pages 83-90.
    5. Larson, James F., 2017. "Network-centric digital development in Korea: Origins, growth and prospects," Telecommunications Policy, Elsevier, vol. 41(10), pages 916-930.
    6. Myovella, Godwin & Karacuka, Mehmet & Haucap, Justus, 2020. "Digitalization and economic growth: A comparative analysis of Sub-Saharan Africa and OECD economies," Telecommunications Policy, Elsevier, vol. 44(2).
    7. Hamed Taherdoost, 2018. "A review of technology acceptance and adoption models and theories," Post-Print hal-03741843, HAL.
    8. Ramzi El-Haddadeh, 2020. "Digital Innovation Dynamics Influence on Organisational Adoption: The Case of Cloud Computing Services," Information Systems Frontiers, Springer, vol. 22(4), pages 985-999, August.
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    Cited by:

    1. Hooks, D. & Davis, Z. & Agrawal, V. & Li, Z., 2022. "Exploring factors influencing technology adoption rate at the macro level: A predictive model," Technology in Society, Elsevier, vol. 68(C).
    2. Angelos I. Stoumpos & Fotis Kitsios & Michael A. Talias, 2023. "Digital Transformation in Healthcare: Technology Acceptance and Its Applications," IJERPH, MDPI, vol. 20(4), pages 1-44, February.
    3. Victoria Marienko & Vitalina Nikitenko & Valentina Voronkova, 2023. "Informatisation Of The Digital Economy As The Main Trend Of Exponential Development," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 9(4).

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    More about this item

    Keywords

    hinformation technologies; digital economy; digital innovations; diffusion of innovations; digital platforms;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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