Abstract
Digital transformation is becoming a mainstream of world economic development providing benefits both to consumers and to businesses adapting to the technological change. Russia, among many other countries, is currently developing a digital economy strategy aimed at supporting sustainable economic growth and increasing productivity. This paper aims to add to the current debate on the priorities of digital economy in Russia by benchmarking Russian ICT development with that in the EU countries and identifying some important preconditions for the digital transformation.
The analysis demonstrates that while the use for Internet and demand for web-based content in Russia is high even by European standards, in Russia, digital technologies in Russia are still seen more as a means of communication rather than a channel for transactions and a source for enhancing business productivity. The lag in terms of connectivity, digital skills, and business adoption of digital technology is significant and is likely to further increase. The economic incentives driving digital economy in the EU countries (such as high labor costs and competition) are insufficient in the Russian context.
Based on the analysis, the new digital economy strategy should be oriented at supporting three main priorities: reducing administrative barriers and creating economic incentives for business digitalization; developing ICT infrastructure with special attention to speed and quality of connection services; and investing in digital skills. These efforts should be complemented by a monitoring and evaluation framework including both core dimensions measured in the EU and sector-specific metrics of digital transformation.
Notes
- 1.
Only the data on indicators available both for the EU and Russia is presented in the table.
- 2.
Hereinafter the data for Russia is for 2015, if not specified otherwise.
- 3.
In Russia, individuals aged 15 to 72 are surveyed which is likely to lead to higher proportion due to more intensive use of Internet in younger age groups. The data on Russia is for 2016.
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Dobrolyubova, E., Alexandrov, O., Yefremov, A. (2017). Is Russia Ready for Digital Transformation?. In: Alexandrov, D., Boukhanovsky, A., Chugunov, A., Kabanov, Y., Koltsova, O. (eds) Digital Transformation and Global Society. DTGS 2017. Communications in Computer and Information Science, vol 745. Springer, Cham. https://doi.org/10.1007/978-3-319-69784-0_36
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