Digitalization of the economy in the provincial region: Main trends and problems

Abstract

The purpose of the study is to analyze the processes of the economy digitalization of the provincial region, to assess their impact on the innovative development of the region through the case of the Mari El Republic. A comparative analysis of the use of digital technologies in the region, in the Volga Federal District (VFD) and Russia is carried out. A pronounced relationship between the indicators of digitalization and innovative activity in the Mari El Republic is revealed on the basis of correlation analysis. The relatively low level of digital infrastructure and digital literacy, and the low level of demand for digital technologies from local businesses are among the main limitations of the economy digitalization. At the same time, the formation of a favorable institutional environment and overall positive dynamics of the main indicators of the economy digitalization, a high level of state support due to the implementation of national and regional programs in the field of the digital economy were revealed. The drivers of digital transformation were organizations in the field of information technology and telecommunications, the electronics industry and universities. The main conclusion of the study is that the digitalization of the regional economy contributes to its innovative development and increased competitiveness.