IDEAS home Printed from https://ideas.repec.org/a/bal/journl/2256-074220217110.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/956/1010
    Download Restriction: no

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/956
    Download Restriction: no

    File URL: https://libkey.io/10.30525/2256-0742/2021-7-1-84-92?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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. 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.
    3. 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).
    4. Hamed Taherdoost, 2018. "A review of technology acceptance and adoption models and theories," Post-Print hal-03741843, HAL.
    5. 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.
    6. 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.
    7. 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.
    8. Larson, James F., 2017. "Network-centric digital development in Korea: Origins, growth and prospects," Telecommunications Policy, Elsevier, vol. 41(10), pages 916-930.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. Cai, Hechang & Wang, Zilong & Ji, Yi & Xu, Liuyang, 2024. "Digitalization and innovation: How does the digital economy drive technology transfer in China?," Economic Modelling, Elsevier, vol. 136(C).
    3. 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.
    4. 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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    2. Ashish Kumar Jha & Indranil Bose, 2021. "Linking Drivers and Outcomes of Innovation in IT Firms: The Role of Partnerships," Information Systems Frontiers, Springer, vol. 23(6), pages 1593-1607, December.
    3. Nair, Mahendhiran & Pradhan, Rudra P. & Arvin, Mak B., 2020. "Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries," Technology in Society, Elsevier, vol. 62(C).
    4. Abdulqadir, Idris & Asongu, Simplice, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," MPRA Paper 109904, University Library of Munich, Germany.
    5. Cheng, Cong & Wang, Limin, 2022. "How companies configure digital innovation attributes for business model innovation? A configurational view," Technovation, Elsevier, vol. 112(C).
    6. Lyu, Yanwei & Xiao, Xuan & Zhang, Jinning, 2024. "Does the digital economy enhance green total factor productivity in China? The evidence from a national big data comprehensive pilot zone," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 183-196.
    7. El-Haddadeh, Ramzi & Osmani, Mohamad & Hindi, Nitham & Fadlalla, Adam, 2021. "Value creation for realising the sustainable development goals: Fostering organisational adoption of big data analytics," Journal of Business Research, Elsevier, vol. 131(C), pages 402-410.
    8. Solomon, Edna Maeyen & van Klyton, Aaron, 2020. "The impact of digital technology usage on economic growth in Africa," Utilities Policy, Elsevier, vol. 67(C).
    9. Yanwei Lyu & Yahui Ge & Jinning Zhang, 2023. "The impact of digital economy on capital misallocation: evidence from China," Economic Change and Restructuring, Springer, vol. 56(5), pages 3475-3499, October.
    10. Zhang, Qi & Wu, Peipei & Li, Rongrong & Chen, Afei, 2024. "Digital transformation and economic growth Efficiency improvement in the Digital media era: Digitalization of industry or Digital industrialization?," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 667-677.
    11. Cuevas-Vargas, Héctor & Aguirre, Joao & Parga-Montoya, Neftalí, 2022. "Impact of ICT adoption on absorptive capacity and open innovation for greater firm performance. The mediating role of ACAP," Journal of Business Research, Elsevier, vol. 140(C), pages 11-24.
    12. Roblek Vasja & Meško Maja & Podbregar Iztok, 2021. "Mapping of the Emergence of Society 5.0: A Bibliometric Analysis," Organizacija, Sciendo, vol. 54(4), pages 293-305, December.
    13. Baldwin, Carliss Y. & Bogers, Marcel L.A.M. & Kapoor, Rahul & West, Joel, 2024. "Focusing the ecosystem lens on innovation studies," Research Policy, Elsevier, vol. 53(3).
    14. Caloffi, Annalisa & Colovic, Ana & Rizzoli, Valentina & Rossi, Federica, 2023. "Innovation intermediaries' types and functions: A computational analysis of the literature," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    15. Quevedo Cascante, Mónica & Acosta García, Nicolás & Fold, Niels, 2022. "The role of external forces in the adoption of aquaculture innovations: An ex-ante case study of fish farming in Colombia's southern Amazonian region," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    16. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    17. Carmen Díaz-Roldán & María del Carmen Ramos-Herrera, 2021. "Innovations and ICT: Do They Favour Economic Growth and Environmental Quality?," Energies, MDPI, vol. 14(5), pages 1-17, March.
    18. Jean-Michel Sahut & Luca Iandoli & Frédéric Teulon, 2021. "The age of digital entrepreneurship," Small Business Economics, Springer, vol. 56(3), pages 1159-1169, February.
    19. Cirillo, Valeria & Fanti, Lucrezia & Mina, Andrea & Ricci, Andrea, 2023. "The adoption of digital technologies: Investment, skills, work organisation," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 89-105.
    20. Kirti SANWAL & Saba ISMAIL, 2024. "ICT and economic growth: Evidence from lower-middle income countries of South Asia," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(639), S), pages 289-302, Summer.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bal:journl:2256-0742:2021:7:1:10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anita Jankovska (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.