Contradiction of the Digital Economy: Public Well-Being vs. Cyber Threats

Abstract

Purpose: The purpose of the paper is to substantiate the logical interconnection of social consequences of the digital economy and its consequences for cyber security and to develop – based on this interconnection - the scientific and methodological provision of systemic monitoring of the digital economy and the model of managing the digital economy for maximizing public well-being and overcoming the cyber threats. Design/Methodology/Approach: For determining the interdependence (cross-correlation) between human development index (indicator of public well-being) and cyber security index (indicator of cyber threats), the authors use the method of correlation analysis; for determining their dependence on the index of digital competitiveness (indicator of the digital economy) the authors use the method of regression analysis. As a result, the authors determine low information content of the statistical indicators that reflect the integral characteristics of public well-being and cyber security and come to the conclusion on inapplicability of the standard (e.g., econometric) methods in the work. That’s why the method of logical analysis is used for analyzing the qualitative essence of social consequences of cyber threats of the digital economy. Findings: It is proved that social consequences of the digital economy and its consequences for the cyber security are interconnected and could and should be studied and managed as a whole. It is substantiates that when treating the cyber threats it is necessary to focus not on their technical components (causes of threats that are determined by the specifics of digital technologies) but on social components – i.e., objects of threats – various categories of the population. In this case, the influence on public well-being becomes a common basis of the studied consequences. Originality/Value: Based on the determined interconnection, the authors develop the scientific and methodological provision of systemic monitoring of effectiveness of the digital economy, which envisages comparison of its social advantages and allows determining the top-priority objects of the digital economy management. Approbation of the offered methodological provision by the example of the digital economy of Russia in 2018 showed its low effectiveness. In order to increase it, it is recommended to use the developed model of managing the digital economy for maximizing public well-being and overcoming the cyber threats.