Year: 2023 | Month: December | Volume 68 | Issue 4

The Impact of Digital Transformation on the Economy: Technological Innovation and Efficiency

Liudmyla Shostak Vasyl Goi Olha Timchenko Lesya Yastrubetska and Marta Derhaliuk


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.


  • m 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.

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