Abstract of the article
“Digital economy. Digitalization in Ukraine”
K.
Gladkaya
2nd - year student
of Faculty of Economic Informatics
S. Kuznets Kharkiv National
Economic University
The article considers the innovations, goals and benefits that digitization of
economic data in our country can bring.
Keywords: digital economy, digitalization, digital transformation, innovation,
digital technology, IT industry, develope.
У статті розглядаються інновації, цілі та користь, яку може
принести оцифровка економічних даних в нашій країні.
Ключові слова: цифрова економіка, цифровізація, цифрова
трансформація, інновації, цифрові технології, ІТ-індустрія,
розвиток.
В статье рассматриваются инновации, цели и польза, которую
может принести оцифровка экономических данных в нашей стране.
Ключевые слова: цифровая экономика, цифровизация, цифровая
трансформация, инновации, цифровые технологии, IТ-индустрия,
развитие.
Digital economy is based on electronic goods and services produced by an
electronic business and traded through electronic commerce, a business
with electronic production and management processes and that interacts
with its partners and customers and conducts transactions through Internet
and Web technologies. With growing population and resource mobilization,
digital economy is not limited to business trading and services effecting on
every aspect of life from health to education and from business to banking.
Many observers have noted the rapid growth of the broadly defined digital
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economy. Much attention is being paid to the ongoing and dramatic growth
in electronic or e-commerce. In spite of its rapid growth in recent years, the
emergence of e-commerce is viewed as an important trend that is only part
of the more general changing structure of the economy brought on by the
dramatic changes in information technology (IT).
The aim of the research work is to consider all the pros and cons of the
digital economy and consider in detail all aspects of such a growing
concept as digitalization.
Digital technologies impact innovation in all sectors of the economy,
including traditional ones such as agriculture, the automotive industry, and
retail. Similar trends across sectors include that the Internet of Things and
data are becoming key inputs for innovation, innovation cycles are
accelerating, services innovation is gaining importance and collaborative
innovation matters more. Sector-specific dynamics are driven by
differences in opportunities such technologies offer for innovation in
products, processes and business models, as well as differences in the
types of data needed for innovation and the conditions for digital
technology adoption. The analysis calls for revisiting innovation policy
mixes to ensure these remain effective and address emerging challenges.
A sectoral approach is needed when designing innovation policies in some
domains, especially regarding data access and digital technology adoption
policies. The current focus of innovation policies on boosting R&D to meet
R&D intensity targets also requires scrutiny. [1]
The rapid spread of digital technologies is transforming many economic
and social activities. However, widening digital divides threaten to leave
developing countries, and especially least developed countries, even
further
behind. A smart embrace of new technologies, enhanced partnerships and
greater intellectual leadership are needed to redefine digital development
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strategies and the future contours of globalization.
The digital economy continues to evolve at breakneck speed, driven by the
ability to collect, use and analyse massive amounts of machine-readable
information (digital data) about practically everything. These digital data
arise from the digital footprints of personal, social and business activities
taking place on various digital platforms. Global Internet Protocol (IP)
traffic,
a proxy for data flows, grew from about 100 gigabytes (GB) per day in 1992
to more than 45,000 GB per second in 2017 (figure). And yet the world is
only in the early days of the data-driven economy; by 2022 global IP traffic
is projected to reach 150,700 GB per second, fuelled by more and more
people coming online for the first time and by the expansion of the Internet
of Things (IoT).
The development and policy implications of data collection and use depend
greatly on the type of data involved: personal or non-personal; private or
public; for commercial or government purposes; volunteered, observed
or inferred; sensitive or non-sensitive. An entirely new “data value chain”
has evolved, comprising firms that support data collection, the production
of insights from data, data storage, analysis and modelling. Value creation
arises once the data are transformed into digital intelligence and monetized
through commercial use. [2]
The expansion of the digital economy creates many new economic
opportunities. Digital data can be used for development purposes and
for solving societal problems, including those related to the SDGs. It can
thus help improve economic and social outcomes, and be a force for
innovation and productivity growth. Platforms facilitate transactions and
networking as well as information exchange. From a business perspective,
the transformation of all sectors and markets through digitalization can
foster the production of higher quality goods and services at reduced costs.
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Furthermore, digitalization is transforming value chains in different ways,
and
opening up new channels for value addition and broader structural change.
But positive outcomes are far from automatic. Just because digitalization
has the potential to support development, any value realized is unlikely to
be equitably distributed. Even if individuals, firms and countries do not − or
only partially − take part in the digital economy, they can still be adversely
affected indirectly. Workers with limited digital skills will find themselves
at a disadvantage vis-à-vis those who are better equipped for the digital
economy, incumbent local firms will meet stiff competition from digitalized
domestic and foreign ones, and various jobs will be lost to automation. The
net impact will depend on the level of development and digital readiness of
countries and their stakeholders. It will also depend on the policies adopted
and implemented at national, regional and international levels. The
development community will need to explore more comprehensive
ways to support countries that are trailing in the digital economy. For
ensuring that digital transformation contributes to more inclusive outcomes,
national efforts in developing countries should be complemented by more
international support. Development partners urgently need to integrate the
digital dimension into their aid policies and strategies. Assistance should
aim at reducing the digital divides, strengthening the enabling environment
for value creation, building capacities in the private and public sectors, and
enhancing trust by supporting the adoption and enforcement of relevant
laws and regulations to promote value creation and capture in the
datadriven digital economy.
Today, much of Ukraine’s IT industry is based on outsourcing. This has
resulted in powerful economic clusters being set up, but the effort devoted
to foreign products has left little space for developing future products for the
domestic sector. Fortunately, domestic companies are constantly being
founded in Ukraine and their number is gradually increasing. Ukrainian IT
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faces a number of options for the future. Due to the war in the East, the
country has had the opportunity to develop cyber warfare technologies,
since Ukraine recently became a literal battlefield for cyber attacks and a
live testing ground for new counter-attack technology. This branch of IT is
becoming more and more popular among its students Ukraine has the
potential to become one of the world’s leaders for research and
development in cybersecurity.
The Ukrainian space industry is losing its competitiveness in the global
market. The lack of interaction between the aviation and space industries
with the domestic IT industry shows that there is untapped potential here,
and points to the demand for cooperation between these industries. The
current curriculum in Ukraine is too stable and old-fashioned, but future
academic exchange with leading world institutions will inevitably lead to
changes in how universities are run in Ukraine. As of yet, the scientific
potential in the country is underused and talent management — a
potentially huge industry — lacks any direction. However, there is every
chance that this industry will develop and that requirements from foreign
institutions will instigate reforms in the Ukrainian education system.
As a general rule, the digitalization of Ukraine is happening at a slower
pace than in the rest of the world, and the main culprit is believed to be the
culture of a bureaucratic style of government left behind by the USSR.
Ukraine is almost remarkable in that we can see in one economy both
state-of-the-art and dynamic organizations working alongside the industrial
dinosaurs of the last century. There is a marked gap between the traditional
style of economy and the digital economy, but this gap is narrowing and
more companies are seeing new opportunities for digitization. Even more
traditional sectors such as agriculture are seeking to incorporate IT
solutions to increase productivity and quality. MAS Seeds Ukraine uses
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data science for selecting better quality seeds grown by their companies.
[3]
"Digitalization is a priority of state policy, which is why a responsible
Ministry was set up to shape and implement the strategy. The adopted
Regulation will allow us to organize the work of the Ministry of Digital
Transformation on a tight schedule", said Deputy Prime Minister, Minister
of Digital Transformation of Ukraine Mykhailo Fedorov.
The Ministry of Digital Transformation shall serve the central certification
body in the sector of electronic trust services. Apart from that, within the
competence of the Ministry is now the developing of broadband access to
the Internet, telecommunications networks and the IT industry.[4]
In conclusion it must be said that I hope that Ukraine will achieve full
digitalization in the near future. First of all, it is a huge step towards a
progressive and smart future, on which we all deserve and strive for a long
time.
REFERENCES
1. How are digital technologies changing innovation - [Electronic
Resourse] https://www.oecd-ilibrary.org/
2. DIGITAL ECONOMY REPORT 2019 / United Nations publication
2019 issued by the United Nations Conference on Trade and
Development.
3. “Awesome Digital Ukraine” - [Electronic Resourse]
https://voxukraine.org/
4. Ministry of Digital Transformation of Ukraine - [Electronic Resourse]
https://www.kmu.gov.ua/
Автор студентка 2-го курсу
Факультету ЕІ
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Гладка К. С.
Науковий керівник cт. викл. Максимова І.О.
Завідувач кафедри педагогіки, проф. Борова Т.А.
Іноземної філології та перекладу
