Objective and Subjective Determinants for Regional Economy’s Digitalization

Purpose: The article is aimed at studying the objective and subjective conditions of digitalization of the regional economy, which could be encouraging or restrictive. Design/Methodology/Approach: Digitalization of the key and auxiliary business processes of regional economy’s entites requires a justification of promising areas of partial or compltete restructuring of the economic policy of enterprises, the transfer of all or individual operations to the digital space. For the effective implementation of this task, it is necessary to take into account the maximum number of positive and negative factors affecting the success of the implementation of digital tools. Description and breakdown of such factors is presented in this article. The methodological background of the research is based on a systematic approach and factor analysis in order to study external and internal opportunities and limitations of the digital economy’s development in the regions. Findings: The study revealed specific subjective and objective restraints and threats preventing enterprises to actively implement technological solutions for processing large amounts of data and digitalization of business processes. The obstructive restraints and constructive opportunities that subjectively affect the development of digital tools are identified and substantiated. The author described the objective drivers of growth and threats to the growth of the digital economy. People and infrastructure a defined as the points of growth, becoming mandatory areas of investment in the digitalization of business processes of enterprises and social processes of non-profit organizations and public authorities. Practical implications: In practice, the results of the study will help determining vectors for the implementation of digitalization tools in the regions, taking into account the conditions for their implementation and supporting the identified growth points. Originality/value: The study has original results clarifying the conditions for the digitalization of the regional economy and determining the specific applications of the efforts of the subjects of economic relations.