Digitalization in Economy and Innovation: The Effect on Social and Economic Processes

Abstract

: Digital technology has significantly changed the speed of operation in the economy. The Internet and digital devices are a driver of economic growth. This article analyzesthe Russian digital economy and society in the context of comparison with EU countries and draws conclusions regardingfuture development trends. Based on secondary data from the European Commission, this studytackles five components of the Digital Economy and Society Index.It includesICT Development Index, Global Innovation Index (GII), Networked Readiness Index, Share-Households with Internet, and High-Technology Exports. A cross-country analysis reveals significant differences between Russia and the EU countries in terms of Internet accessand Digital Economy,and their impact on GDP and social processes that take place in the country. Findings show that Russia holds a position among the top ten countries inICT Development Index and Network Readiness Index. The growth rate of high-tech exports indicatesthe lag of Russia behind other countries in the ranking.According to the ranking of countries by high-tech exports, Russia lags in the production of products with high R&D intensity, such as aerospace products, computers, pharmaceuticals, scientific instruments and electrical machinery. Russia holds a strong position in National Cyber Security (63.64%), as well as in the Share of Households with Internet.