Strategic Oportunities for the Transition to Digital Technologies in Russian Regions

Abstract

The purpose of this study is to identify the opportunities and threats of digitalization, assess the impact of digital technologies on the socio-economic development of regions and assess the level of digital inequality in Russia. The theory of strategy and methodology of strategizing by academician V.L. Kvint is the theoretical and methodological basis of the study. According to the strategy methodology, the opportunities, and threats of the transition to digital technologies are determined at the level of individual regions and the country as a whole. The Theil index is used to assess the digital divide. The indicator by which inequality is assessed is the gross value added in the Information and Communications Activities sector. Let us decompose the Theil index into two components: intragroup and intergroup. Index estimates were obtained for the period 2016-2022. by constituent entities of the Russian Federation and by federa districts. It has been established that the digital divide is growing, and when considering federal districts, the intragroup component accounts for 80% of the regional variation in the indicator. A strong relationship was found between digital spending and the gross value added of the ICT industry. An OTSW analysis of the impact of digital technologies on the regional economy was carried out, the identified strategic opportunities are the basis for formulating strategic priorities, and strengths are the competitive advantages. The consistency of the regional development strategy with the strategic priorities of digitalization will make it possible to neutralize threats and take advantage of the opportunities of the digital economy for regional growth and development.