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Advances in Science, Technology & Innovation
IEREK Interdisciplinary Series for Sustainable Development
Editorial Board
Anna Laura Pisello, Department of Engineering, University of Perugia, Italy
Dean Hawkes, University of Cambridge, Cambridge, UK
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Hassan Abdalla, University of East London, London, UK
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Beirut Arab University, Beirut, Lebanon
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Gloria Pignatta, University of Perugia, Italy
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Luciano De Bonis, University of Molise, Italy
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Thessaloniki, Greece
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Sydney, Australia
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Series Editor
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(IEREK), Cairo, Egypt
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123
Editors
Yakhya G. Buchaev Salikhbek G. Abdulmanapov
Dagestan State University of National Economy Dagestan State Institute of National Economy
Makhachkala (Republic of Dagestan), Russia Makhachkala, Russia
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021
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Introduction
One of the key trends of our time, which determined the wave of the market cycle for the
upcoming years, is the transition to a digital economy. Joining the initiative of the leaders of
scientific and technological progress, Russia launched its own national program “Digital
Economy of the Russian Federation”, which was approved by the order of the Government
of the Russian Federation on July 28, 2017 № 1632-r, and its passport was approved by the
decision of the Presidium of the Council under the President of the Russian Federation for
Strategic Development and National Projects on December 24, 2018.
The strategic importance and priority of the adopted program for the Russian economy is
emphasized by the fact that for its practical implementation the Autonomous Non-Commercial
Organization “Digital Economy” was formed and the Ministry of Digital Development,
Communications, and Mass Media of the Russian Federation was established. The regions are
responsible for the implementation of the innovations provided for in the program. It is at the
regional level that the basic concept of the digital economy is expected and should be adapted
to the current economic reality and that breakthrough technologies are implemented in busi-
ness activities, household practices, and e-government activities.
The transition to a digital economy poses unprecedented challenges for the modern region.
One of these challenges is the need to form and stimulate the growth of telecommunication
infrastructure usage in the region. Another challenge is to launch its own digital development
programs for different sectors of the regional economy and ensure their systematic imple-
mentation in order to maintain the integrity and stability of the region’s economy, as well as its
balanced development and comprehensive modernization.
The challenges also include the need to monitor the digital development of the regional
economy. At the same time, the scientific and methodological basis for indicative assessment
and analysis of the level of digitalization of the regional economy is in the process of for-
mation. Among the challenges, it is also necessary to mention the need for proactive state and
corporate management of the development of the digital economy of the region. Only a
program-oriented management approach will enable the use of digitalization opportunities to
improve the region’s socioeconomic situation and, in particular, its competitiveness in both the
national and global economy. Another challenge is to take into account the views of stake-
holders and to orient the digital economy towards addressing the social and environmental
challenges of the region.
The regions can provide a response to these major and numerous additional challenges of
our time only with coordinated state and corporate management of the digital economy.
Involvement of business in the regional programs of digital modernization and the formation
of the information society is necessary, because only with the support of private capital it is
possible to achieve a full-scale financing of the launched programs and only with the transition
of business to the digital form of business activity with the active use of advanced technologies
the full-scale transition of the region to a digital economy becomes possible.
v
vi Introduction
This monograph provides a systematic study of current problems and prospects for
improving the practice of state and corporate governance of the region's development in the
digital economy, based on the example of the regions of the North Caucasus Federal District
as one of the most progressive districts of the Russian Federation, but at the same time
retaining its peripheral position in the Russian regional economy, so that its experience is
universal and can be useful for most regions of Russia and other countries of the world—both
developed and developing.
The book summarizes the experience of these regions, as well as offers a set of scientific,
methodological, and applied recommendations for the system organization and the maxi-
mization of the effectiveness of public and corporate governance of the region’s development
in the digital economy. We hope that the book will be interesting for a wide range of target
audiences, including heads of regional business structures interested in modernizing their
enterprises and supporting regional digital development projects, as well as for representatives
of regional government bodies that develop and regulate regional strategies for the formation
and development of the digital economy.
Yahya G. Buchaev
Dr. Sci. (Econ.), Professor, Rector
Dagestan State University of National Economy (DSUNE)
Makhachkala, Russia
dgunh@dgunh.ru
Salihbek G. Abdulmanapov
Dr. Sci. (Econ.), Professor
Director of the Research Institute of Management
Economics, Politics and Sociology
Dagestan State University of National Economy (DSUNE)
Makhachkala, Russia
salih@mail.ru
Arsen S. Abdulkadyrov
Ph.D. (Economics), Associate Professor, Senior Researcher
Department of Social and Economic Security
Center for Social Security and Riskology, ISPI RAS
Moscow, Russia
ars.rggu@mail.ru
Arutyun A. Khachaturyan
Market Economy Institute of the Russian Academy of Sciences
Moscow, Russia
karutyun@yandex.ru
Contents
vii
viii Contents
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
The Model of Digital Development
of a Modern Region: New Challenges
for State and Corporate Management
Abstract the rapid growth of the digital economy, which is the case
in the regions of the North Caucasus Federal District of
Purpose: The article is aimed at identifying new
the Russian Federation, the “side effect” is the depletion
challenges for public and corporate management in the
of state and corporate budgets in the region and the
context of the digital development of the modern region,
financial crisis (pessimistic scenario). An alternative
the definition of scenarios, and the optimal model of
optimistic scenario is also possible which enables to
management of this development. Design/Methodology/
avoid the crisis and possibly achieve even greater
Approach: The authors apply the methodology of corre-
progress in building the digital economy. For its imple-
lation and scenario analysis, as well as economic
mentation, the model of state and corporate management
modeling. Certain calculations are made to identify the
of digital development of the modern region has been
correlation between the indicators of public and corporate
developed in order to optimize it, based on the measures
management performance in the region—the balanced
of non-financial management, which ensure greater
financial result of enterprises and the balance of the
efficiency of management due to lower consumption of
regional budget—and the indicators of digital develop-
resources while achieving long-term (synergy) effect.
ment of the region—the share of enterprises using the
Internet, the number of personal computers per 100
Keywords
employees, the share of households with computers and
the Internet, as well as the share of innovation-active Digital development Regional economy Public
organizations. Findings: In the course of the research it management Corporate management Digital economy
was shown that the digital development of the economy Russian regions
of the regions, which are not characterized by a distinct
inclination to scientific and technical progress, is based on JEL Codes
the measures of state financial support of the digital
modernization of the economic system of the region and G34
O18 O31 R11 R58
on the measures of corporate financing of own digital
modernization. Originality/Value: It is justified that,
although financial management measures may ensure
1 Introduction
M. M. Shabanova (&)
Department of State and Municipal Administration, Dagestan Modern business systems are entering the digital age one by
State Technical University (DSTU), Makhachkala, Russia one. Russia was one of the first countries in the world to
e-mail: madinash07@mail.ru launch the process of digital modernization of its social and
N. M. Kurshiyeva economic systems (it is among the 63 countries with digital
Economic Sciences, Department of State and Municipal economies according to the IMD version by the 2018 data)
Administration, Dagestan State Technical University (DSTU),
Makhachkala, Russia —for this purpose, the program “Digital Economy of the
e-mail: nurisat@mail.ru Russian Federation” was adopted, approved by the order of
T. A. Kamalova the Government of the Russian Federation dated July 28,
Technical Sciences, Department of Commerce and Marketing, 2017, № 1632-r. The course on digital modernization has
Dagestan State University (DSU), Makhachkala, Russia been adopted at the national level for the benefit of the
e-mail: kamalova05@mail.ru
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 1
Y. G. Buchaev et al. (eds.), State and Corporate Management of Region’s Development in the Conditions
of the Digital Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-030-46394-6_1
2 M. M. Shabanova et al.
economic system as a whole, but it is being implemented at mainly the most progressive micro- and macro-level eco-
the regional level and may have different implications for nomic systems.
them. The consequences of the digital economy arising at the
The most advanced regions are likely to benefit the most meso-level (at the regional level) are practically not covered
from digital modernization, as they will be able to unlock in the modern research literature as well as the issues of state
their high-tech development potential more fully. They have and corporate management of adaptation of the region to the
a technological backbone and will be able to use it to digital economy. In order to fill the gap in the system of
enhance their competitiveness in the regional economy and economic knowledge, we apply the methodology of correla-
beyond. Digitalization is in harmony with their social and tion and scenario analysis as well as economic modeling. We
business preferences. For the population, this will mean the chose the regions of the North Caucasian Federal District of
formation of new high-performance, creative, and high-paid the Russian Federation as the objects of our research, as they
jobs, expanding opportunities for the fulfillment of human are not among the most progressive regions of the country,
potential and increasing the availability of goods and ser- i.e., the top ten regions in terms of the level of digitalization
vices. Advantages for regional entrepreneurship are related development “Digital Russia”. For example, the Republic of
to access to new markets and increased opportunities to Dagestan is ranked in this rating (D-Russia, 2019).
optimize production, supply, and marketing, and for regional The hypothesis is tested by calculating the correlation
governments—to the growth of tax revenues. between the indicators of public and corporate management
At the same time, the consequences of digital modern- performance in the region—the balanced financial perfor-
ization for other regions, which are less progressive, making mance of enterprises and the balance of the regional budget
up the majority, in contrast, may be accompanied by a crisis —and the indicators of digital development of the region—
of entrepreneurship due to a sharp decline in competitiveness the share of enterprises using the Internet, the number of
due to the slow implementation of digital technologies. personal computers per 100 employees, the share of
People in such regions can protest and resist digitalization, households with computers and the Internet as well as the
making it more difficult to implement and slowing it down. share of innovation-active organizations. The statistical data
This will cause additional expenses for the regional public collected by us are shown in Table 1.
authorities and lead to an increase in the regional budget
expenditures, while the prospects for increasing its revenue
side will be limited. 3 Results
The foregoing determines the relevance of the research
and seeking solutions to the problem of digital development The results of our correlation analysis are shown in Fig. 1.
of the modern region from the standpoint of public and According to Fig. 1, the growth in innovation activity of
corporate management in order to optimize this process, enterprises in the regions of the North Caucasus Federal
especially in those regions that do not lead the scientific and District of Russia in 2018 leads to a decrease in the regional
technological progress. This paper is aimed at identifying budget balance (correlation −18.38%). Internet access of
new challenges for public and corporate management in the households reduces both the balance of the regional budget
context of the digital development of the modern region, the (correlation −40.58%) and the balanced financial result of
definition of scenarios, and the optimal model of manage- enterprises (correlation −28.50%). The balance of the
ment of this development. regional budget decreases with the computerization of
households (correlation −21.64%), with the increase in the
number of personal computers per 100 employees (correla-
2 Materials and Methods tion −17.81%), and with the growth of activity of enterprises
in using the Internet (correlation −42.51%).
As a result of the review of the existing scientific literature, The results obtained are probably related to forced state
we have revealed that some issues of state and corporate support for modernization in the regions of the North Cau-
management in the digital economy are considered in the casus Federal District of Russia in 2018 through
works of Abdulkadyrov et al. (2017), Buchaev et al. (2014), co-financing and incentives for the digitalization of house-
Gadzhiev and Buchaev (2014), Khachaturyan et al. (2017), holds and entrepreneurship. The new challenges for state and
Khachaturyan et al. (2018), Petrenko et al. (2018), Popkova corporate governance that arise in the context of the digital
(2019), Popkova et al. (2019), Popkova et al. (2018), development of the modern region are systematized in
Popkova and Parakhina (2019), Popkova and Sergi (2018), Table 2.
Popkova and Sergi (2019), Ragulina (2019), Sergi et al. As shown in Table 2, in the context of the digital
(2019), and Sergi (2019). At this, the objects of research are development of the modern region, there are some new
The Model of Digital Development of a Modern Region … 3
Table 1 State and corporate management performance indicators and digital development indicators of the regions of the North Caucasus Federal
District of Russia in 2018
Region Balanced Regional Share of Number of Share of Share of Share of
financial result budget companies personal households households innovation-active
of enterprises, balance, using the computers per with a with access to organizations, %
million rubles million Internet, % 100 employees, computer, the Internet, %
rubles pcs. %
The Republic of −11920 3696 68.4 34 62.8 76.3 2.8
Dagestan
The Republic of −1465 117.2 100.0 37 70.5 86.3 4.8
Ingushetia
The −801 −2697 84.4 37 68.2 81.6 3.8
Kabardino-Balkaria
Republic
The 904 47.1 90.3 44 69.4 81.7 1.8
Karachay-Cherkessia
Republic
The Republic of −362 −385.6 80.4 40 87.2 88.1 4.0
North Ossetia–Alania
The Chechen −11375 360.8 94.4 44 39.4 74.9 0.2
Republic
Stavropol Krai 48780 382.8 96.7 49 69.6 74.4 5.2
Source compiled by the authors based on the materials of Rosstat (2019)
Fig. 1 Correlation of state and corporate management performance indicators with digital development indicators of the North Caucasus Federal
District of Russia in 2018. Source calculated and constructed by the authors
objects of state administration—digital infrastructure, digital Under this scenario, the government implements a set of
society, and digital entrepreneurship—and corporate gover- measures to provide financial incentives for digital mod-
nance—intellectual resources, digital technologies, “smart” ernization of the region’s social and economic system,
production. They find themselves in a new field for com- including subsidies and tax incentives for entrepreneurship.
petition: the state in high-tech markets and entrepreneurship While these measures can be highly effective, they
in high-tech products markets. New management technolo- deplete the regional state budget. Similarly, corporate gov-
gies are also becoming available to them: for the state ernance involves the acquisition of off-the-shelf technology
e-government and the “smart” region, and for solutions and digital devices, as well as the recruitment of
entrepreneurship—intellectual support for decision-making. highly qualified digital personnel. Corporate financial
Answers to these challenges may be different—to reflect resources are also being spent rapidly. Already in the med-
the high degree of their differentiation we have defined two ium term, there is an acute shortage of financial resources in
opposite scenarios of state and corporate management of the region, provoking a financial crisis.
digital development in the modern region. The pessimistic The optimistic scenario involves relying on non-financial
scenario implies an emphasis on financial management. management. Under this scenario, the government
4 M. M. Shabanova et al.
Table 2 New challenges for Challenges Impact of challenges on public Impact of challenges on corporate
public and corporate governance, administration governance
arising in the context of digital
development of the modern New management Digital infrastructure, digital Intellectual resources, digital technology,
region objects society, digital enterprise smart manufacturing
New field for High-tech markets High-tech markets
competition
New management E-government, smart region Intellectual support for decision-making
technologies
Source designed and compiled by the authors
implements a set of non-financial stimulation measures for practice, ensures the implementation of an optimistic sce-
digital modernization of the region’s social and economic nario, thus avoiding a financial crisis and accelerating the
system, including social marketing measures for the devel- digital development of a modern region.
opment of digital competences, measures for the develop-
ment of digital infrastructure, which is provided on market
(paid) terms, on the basis of public–private partner- 4 Conclusion
ship. Corporate governance includes measures for indepen-
dent research and development, integration measures In the course of the study, it was shown by the example of
(clustering, participation in industrial parks, special eco- the regions of the North Caucasus Federal District of the
nomic zones, etc.), as well as measures for corporate training Russian Federation that the digital development of the
of digital personnel. economy of regions not characterized by a pronounced
In order to successfully respond to the described chal- propensity for scientific and technological progress is based
lenges and optimize the digital development of regions that on measures of state financial support for the digital mod-
do not lead the scientific and technological progress, we ernization of the region’s economic system and on measures
have developed the following model of state and corporate of corporate financing of own digital modernization.
management of this process (Fig. 2). While financial management measures may provide for
As shown in Fig. 2, the model of state and corporate the rapid growth of the digital economy, as is observed in the
management of digital development of a modern region that regions of the North Caucasus Federal District of the Rus-
we have developed for the purpose of its optimization sian Federation, the “spillover effect” is the depletion of state
implies reliance on non-financial management measures, and corporate budgets in the region and the financial crisis (a
which are relatively new for Russian regions. The measures pessimistic scenario). Alternatively, an optimistic scenario is
include, in particular, promoting commercialization of digi- possible to avoid the crisis and achieve perhaps even greater
tal innovations in higher education institutions (instead of progress in building a digital economy. To implement this
traditional R&D funding), non-financial stimulation of scenario, a model of state and corporate management of
infrastructure development (instead of traditional state digital development of a modern region has been developed
funding). The proposed model, if successfully applied in for the purpose of its optimization, which is based on
The Model of Digital Development of a Modern Region … 5
non-financial management measures ensuring greater man- Popkova, E. G., Egorova, E. N., Popova, E., & Pozdnyakova, U. A.
agement efficiency due to lower resource consumption while (2019). The model of state management of economy on the basis of
the Internet of things. Studies in Computational Intelligence, 826
achieving long-term (synergy) effect. (1), 1137–1144.
Popkova, E. G., Morozova, I. A., & Litvinova, T. N. (2018).
Transformational processes in the media system under industry
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Factors of Development of the Region’s
Labour Market in the Conditions
of the Digital Economy and the Tools
of Their Management
the hypotheses, regression curves are drawn that auto-
matically form paired linear regression models and Labour market Region Digital economy State
calculate correlation coefficients. Findings: Three factors administration Russian regions
have been identified for the development of the region’s
labour market in the digital economy: the increase in the JEL Codes
level of education in the “knowledge economy”, the
growth of innovative activity of entrepreneurship and the
R58
J01 J08 J23 J71 G34 O18 O31 R11 R23
computerization of entrepreneurship. It has been revealed
that, although structural transformations of the labour
market are indeed taking place in the regions of the North
Caucasus Federal District of the Russian Federation in
2018, they contradict the existing ideas. Originality/ 1 Introduction
Value: It has been proved that in the digital economy,
instead of the expected crisis of the labour market (rising The digital economy is changing the context in which the
unemployment and social tension), favourable conditions labour market is functioning and developing. The spread of
and new opportunities are being created to balance the digital technologies contributes to the formation of a new
market and establish social justice in it (preventing essential interpretation of labour itself as a process of busi-
discrimination against employees in terms of age and ness processes, the subject of which can be not only a person
level of education). However, in the case of market —manual labour, mechanized labour—but also digital
devices—automated labour: such as partially under the
control of man (e.g. robots, manipulators), and complete or
N. Y. Golovetsky (&) V. V. Khamalinskaya under the control of artificial intelligence (e.g. the Internet of
Economic Sciences, Financial University Under the Government
of the Russian Federation, Moscow, Russia things). The obvious consequence of this process is the
e-mail: nik1957@mail.ru structural transformation of the labour market (general
V. V. Khamalinskaya hypothesis H1).
e-mail: nik1957@mail.ru One of the proposed transformations (hypothesis H11)
V. V. Grebenik consists in the increase of the importance of education in the
Economics, Financial University Under the Government of the labour market. The application of digital technologies
Russian Federation, Moscow, Russia requires digital competencies, i.e. professional knowledge,
e-mail: gvik65@mail.ru
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 7
Y. G. Buchaev et al. (eds.), State and Corporate Management of Region’s Development in the Conditions
of the Digital Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-030-46394-6_2
8 N. Y. Golovetsky et al.
skills and abilities to apply specialized digital devices and The indicated labour market transformations are consid-
software. In addition, there is a need for high levels of media ered to be axioms that have been logically determined and
literacy, namely the possession of general competencies that are not supported by factual data. However, modern statistics
enable the use of non-specialized digital technologies, such does not confirm these transformations. In particular, the
as modern office equipment. most progressive countries that are leaders in the global
These competencies are acquired in the course of study, rating of digital competitiveness of the economy (e.g. the U.
and most of them are obtained only through higher educa- S.—IMD rating) are not characterized by a sharp increase in
tion. The direct consequence of this is a decrease in the unemployment, despite the fact that the level of automation
competitiveness of workers without university education on has increased many times in recent years (2012–2019),
the labour market, and an increase in their unemployment including a complete automation as well. This indicates the
due to a decrease in the demand for their labour. The absence or opposite of labour market transformations in the
transformation described above makes it possible to build a digital economy and/or the existence of ways to manage
logical link between the development of a digital economy them.
and the development of a “knowledge economy” charac- In this connection, we think it is necessary to consider the
terized by the value of university education and the recog- described transformations not as axioms, but as hypotheses
nition of the concept of lifelong learning. that need to be tested. In this study, we aim to investigate the
Another expected transformation (hypothesis H12) is factors of the development of the region’s labour market in
related to the increase in age restrictions of the labour market the digital economy (using the regions of the North Cauca-
and early “ageing” of personnel. The younger the worker is sus Federal District of the Russian Federation as an example)
the more flexible thinking he or she has, and the youngest and to develop tools to manage them in order to optimize
workers belong to the “Generation Z” (the so-called “digital transformations.
natives”), which are most inclined and able to use digital
technologies. Representatives of “Generation X” (employees
over 55–65 years of age, depending on territorial peculiari- 2 Materials and Method
ties—digital outsiders) have the least inclination and ability
to master and apply digital technologies in practice. The transformation of the labour market in the digital
There is also an intermediate “Generation Y” (so-called economy is considered in the numerous works of modern
“digital migrants”—(workers aged from 40–45 to 55– authors. For example, Abdulkadyrov et al. (2017), Buchaev
60 years) who are not eager but capable of mastering and et al. (2014), Gadzhiev and Buchaev (2014), Khachaturyan
using digital technologies as necessary. In the digital econ- et al. (2017, 2018) recognize the increasing importance of
omy, the age limits between generations of workers are more education in the labour market. Petrenko et al. (2018),
clearly delineated. This leads to increased age discrimination Popkova (2019), Popkova et al. (2018, 2019), Popkova and
in the labour market. Against the backdrop of rising retire- Parakhina (2019) note the increasing age restrictions of the
ment ages in most of today’s developed and developing labour market and the early “ageing” of personnel. Popkova
countries, including Russia, we can expect an increase in and Sergi (2018, 2019), Ragulina (2019), Sergi et al. (2019),
unemployment due to the actual (although not recognized by Sergi (2019) write about tougher competition in the labour
law) disability of workers over 55–60 years of age (age may market under the influence of mass full automation.
differ not only between countries but also between regions of However, in most cases, no statistical evidence is pro-
the same country). vided to support the transformations described. Therefore,
Another supposed transformation (hypothesis H13) is the the scientific and empirical basis for studying the labour
toughening of competition in the labour market under the market in the digital economy is not formed and needs to be
influence of mass full automation. As the availability and developed. In this research, we decided to use one of the
functionality of digital labour resources increase, the entre- most common methods of econometrics—regression analy-
preneurs see their advantages over human resources. These sis. With its help, we are going to test all the three
benefits are associated with higher productivity, reduced risk hypotheses that have the following mathematical expression:
of disruption (disruption of work discipline and its ana-
logue–digital device breakdowns) and errors (the so-called – Hypothesis H11: regression dependence of the share of
“human factor”), as well as greater accountability and employed population (aged 15–72) with higher education
accuracy in the performance of work functions, allowing for (y1) on the number of graduates (bachelors, specialists,
the production of more high-tech products. Subsidiarity masters) (x1) pronounced and direct;
(interchangeability) of workers and digital devices in the – Hypothesis H12: regression dependence of the average
labour market is likely to increase the intensity of the market age of the unemployed (y2) on the share of organizations
and to exacerbate the problem of unemployment. implementing innovations (x2), pronounced and direct;
Factors of Development of the Region’s Labour Market … 9
3 Results
Table 1 Selection of data for the analysis of the development of labour market in conditions of digital economy in the regions of the North
Caucasus Federal District of the Russian Federation in 2018
Region of the North Bachelors, Share of Share of Average age Share of Coefficient of
Caucasus Federal specialists, employed organizations of the organizations tension in the
District of the Russian masters, K of population with implementing unemployed, using personal labour market,
Federation people higher education, innovations, % years computers, % share of 1
%
x1 y1 x2 y2 x3 y3
The Republic of 14.1 30.0 2.8 31.8 72.5 189.4
Dagestan
The Republic of 1.5 26.7 4.8 30.4 100.0 168.1
Ingushetia
The 3.0 32.8 3.8 34.1 91.5 11.7
Kabardino-Balkaria
Republic
The 2.3 42.7 1.8 37.1 92.3 17.3
Karachay-Cherkessia
Republic
The Republic of North 5.4 42.2 4.0 39.6 90.7 35.9
Ossetia–Alania
The Chechen Republic 5.7 39.7 0.2 32.9 96.9 44.6
Stavropol Krai 17.9 35.7 5.2 35.2 98.1 2.5
(District)
Source compiled by the authors based on Rosstat materials (2019)
10 N. Y. Golovetsky et al.
Economic Sciences, Department of Social and Economic Security,
Center for Social Security and Riskology, ISPI RAS, Moscow, Assessment Competitiveness Region Digital
Russia
economy Digital competitiveness Russian regions
e-mail: ars.rggu@mail.ru
E. P. Zhigulina
JEL Codes
Department of Economics of the Oil and Gas Industry, Russian
State University of Oil and Gas (National Research University,
D41 O18 O31 R11 R58
Named After I.M. Gubkina), Moscow, Russia
e-mail: zhigulina.ep@mail.ru
E. P. Samokhvalova
Department of Economics of the Oil and Gas Industry, Russian
State University of Oil and Gas (National Research University)
Named After I.M. Gubkina (RGUNG), Moscow, Russia
e-mail: geine.s-s@mail.ru
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 13
Y. G. Buchaev et al. (eds.), State and Corporate Management of Region’s Development in the Conditions
of the Digital Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-030-46394-6_3
14 A. S. Abdulkadyrov et al.
Table 1 Scientific and methodological support for the evaluation of the region’s competitiveness in the conditions of the digital economy
Evaluation criterion Measures for the relevant criteria
Quantitative, various units of measure Qualitative, points 1–10
Name Designation Name Designation
Degree of digitalization of Share of households owning a ds1(quant.) Prevalence of digital devices and ds1(qual.)
society computer, %* technologies among the population
Share of households with access to ds2(quant.) Level of digital literacy and ds2(qual.)
the Internet, %* receptiveness of society to digital
technologies
DS=[ds1(quant.)+ds2(qual.)]+[ds1(qual.)+ ds2(qual.)]/4, shares of 1
Level of digitalization of Share of companies owning a de1(quant.) Prevalence of digital devices and de1(qual.)
entrepreneurship computer, %* technologies among enterprises
Share of enterprises with access to the de2(quant.) Level of digital competence and de2(qual.)
Internet, %* digital receptivity of employees
DE=[de1(quant.)+de2(quant.)]+[de1(qual.)+ de2(qual.)]/4, shares of 1
Availability and quality of Regulatory and administrative di1(quant.) Sufficiency of digital infrastructure di1(qual.)
digital infrastructure indicators for digitalization, points
1-100**
Information infrastructure, points di2(quant.) Digital infrastructure price availability di2(qual.)
1-100**
Information security, points 1–100** di3(quant.) Quality (including security) of digital di3(qual.)
infrastructure
DI=[di1(quant.)+di2(quant.)+ di3(quant.)]+[di1(qual.)+ di2(qual.)+ di3(qual.)]/6, shares of 1
The scale of digitalization Implementation level of dg(quant.) Digitalization of public services and dg(qual.)
of the state administration e-government, points 1–100*** management
DG=[dg(quant.)+ dg(qual.)]/2, shares of 1
Digital Competitiveness Index: DC=(DS+DE+DI+DG)/4
Sources of statistical data on the example of the Russian Federation
*Russian State Statistics Service Collection “Regions of Russia: socio-economic indicators” (section “Information and communication
technologies”
**Subindexes of “Digital Russia” index calculated by “Skolkovo”
***Monitoring conducted by “State Management”
Source developed and compiled by the authors
Table 2 Indicators of digital competitiveness of regions of the North Caucasus Federal District of the Russian Federation in 2018
Indicator Type of North The The The The The The Stavropol
meaning Caucasus Republic Republic Kabardino-Balkaria Karachay-Cherkessia Republic Chechen Krai
Federal of of Republic Republic of North Republic
District Dagestan Ingushetia Ossetia
Share of households initial 66.0 62.8 70.5 68.2 69.4 87.2 39.4 69.6
owning a computer
ds1(quant.) – 0.95 1.07 1.03 1.05 1.32 0.6 1.05
Share of households initial 78.30 76.3 86.3 81.6 81.7 88.1 74.9 76.6
with access to the
ds2(quant.) – 0.97 1.1 1.04 1.04 1.13 0.96 0.98
Internet
Prevalence of digital initial 7.34 9.24 6.6 6.82 6.9 5.06 8.71 8.02
devices and
ds1(qual.) – 1.26 0.90 0.93 0.94 0.69 1.19 1.09
technologies among
the population
Level of digital initial 7.59 9.34 9.47 7.65 5.95 5.73 8.35 6.66
literacy and
ds2(qual.) – 1.23 1.25 1.01 0.78 0.75 1.10 0.88
receptiveness of
society to digital
technologies
Share of companies initial 89.40 72.5 100 91.5 92.3 90.7 96.9 98.1
owning a computer
de1(quant.) 1.02 0.81 1.12 1.02 1.03 1.01 1.08 1.1
Share of enterprises initial 85.90 68.4 100 84.4 90.3 80.4 94.4 96.7
with access to the
de2(quant.) – 0.8 1.16 0.98 1.05 0.94 1.1 1.13
Internet
Prevalence of digital initial 6.91 7.12 9.05 7.32 5.7 6.46 6.39 6.32
devices and
de1(qual.) – 1.03 1.31 1.06 0.82 0.93 0.92 0.91
technologies among
enterprises
Level of digital initial 6.93 7.5 5.59 6.98 8.06 5.44 9.06 5.88
competence and
de2(qual.) – 1.08 0.81 1.01 1.16 0.78 1.31 0.85
digital receptivity of
employees
Regulatory and initial 45.62 43.58 40.7 48.64 41.93 40.31 52.9 51.27
administrative
di1(quant.) – 0.96 0.89 1.07 0.92 0.88 1.16 1.12
indicators for
digitalization
IT infrastructure initial 46.61 46.34 41.26 49.63 40.63 42.79 48.97 56.63
di2(quant.) – 0.99 0.89 1.06 0.87 0.92 1.05 1.21
Information security initial 45.61 45.66 40.94 46.92 39.64 41.77 47.69 56.68
di3(quant.) – 1 0.9 1.03 0.87 0.92 1.05 1.24
Sufficiency of digital initial 7.20 5.06 8.3 8.53 7.49 8.48 5.37 7.19
infrastructure
di1(qual.) – 0.70 1.15 1.18 1.04 1.18 0.75 1.00
Digital infrastructure initial 7.02 5.33 6.65 9.16 6.97 6.57 7.7 6.73
price availability
di2(qual.) – 0.76 0.95 1.30 0.99 0.94 1.10 0.96
Quality (including initial 6.80 5.47 5.73 7.57 8.86 7.94 6.43 5.63
security) of digital
di3(qual.) – 0.80 0.84 1.11 1.30 1.17 0.95 0.83
infrastructure
Implementation level initial 31.71 42 12 81 12 24 12 39
of e-government
dg(quant.) – 1.32 0.38 2.55 0.38 0.76 0.38 1.23
Digitalization of initial 7.32 9.06 5.17 7.85 5.8 5.15 8.78 9.41
public services and
dg(qual.) – 1.24 0.71 1.07 0.79 0.70 1.20 1.29
management
Source calculated and compiled by the authors on the basis of materials of State Management (2019), Rosstat (2019), Skolkovo (2019)
example, the digital competitiveness of the quantitative terms and 0.98 in qualitative terms. The results
Karachay-Cherkessia Republic was 1.22 by quantitative of the final assessment (DC) are shown in Fig. 2.
assessment and 1.08 by qualitative assessment. Similarly, As can be seen from Fig. 2, the highest level of digital
the digital competitiveness of Stavropol Krai was 1.13 in competitiveness among regions of the North Caucasus
Scientific and Methodological Provision of Region’s … 17
Fig. 1 Quantitative and qualitative assessment of the digital competitiveness of regions of the North Caucasus Federal District of the Russian
Federation in 2018. Source calculated and constructed by the authors
Fig. 2 Final assessment of digital competitiveness (DC) of the regions of the North Caucasus Federal District of the Russian Federation in 2018.
Source calculated and constructed by the authors
18 A. S. Abdulkadyrov et al.
Federal District of the Russian Federation in 2018 is Gadzhiev, M. M., & Buchaev, Y. G. (2014). Efficiency assessment of
observed in the Kabardino-Balkaria Republic (1.15), and the enterprise innovation activities. Life Science Journal, 11(10), 581–
586, 82.
lowest one is in the Karachay-Cherkessia Republic (0.94). Giordano, B., & Dubois, A. (2019). Combining territory and compet-
itiveness in EU regional policy? Analyzing ERDF investment
profiles in regions with specific geographical features. Regional
4 Conclusion Studies, 53(8), 1221–1230.
Gos-management. (2019). Ratings of Russian regions on information
technology development. Retrieved September 09, 2019, from
The study, therefore, justifies that, unlike overall competi- http://www.tadviser.ru/index.php/.
tiveness (taking into account education. health. standard of Khachaturyan, A. A., Abdulkadyrov, A. S., Zhigulina, E. P., &
living and other indicators), for which the necessary statistics Sirotkina, N. V. (2017). The issues of improving the investment
climate and investment attractiveness of Russian industries in the
are available and their high reliability is ensured. The medium-term perspective. Izvestiya Vysshikh Uchebnykh Zavedenii.
assessment of digital competitiveness cannot be based only Seriya Teknologiya Tekstil’noi Promyshlennosti, 371(5), 40–43.
on statistics (due to their deficiency and inaccuracy) and Khachaturyan, A. A., Khachaturyan, K. S., & Abdulkadyrov, A. S.
should, therefore, also take into account the meaning of (2018). Model of innovational development of modern Russian
industry. Advances in Intelligent Systems and Computing., 622, 44–
qualitative indicators. This is achieved in the developed 50.
scientific and methodological support of the assessment of Petrenko, E., Pritvorova, T., & Dzhazykbaeva, B. (2018). Sustainable
regional competitiveness in the digital economy. development processes: Service sector in post-industrial economy.
Its testing by the example of the regions of the North Journal of Security and Sustainability Issues., 7(4), 781–791.
https://doi.org/10.9770/jssi.2018.7.4(14).
Caucasus Federal District of the Russian Federation in 2018 Popkova, E. G. (2019). Preconditions of formation and development of
demonstrated significant differences in quantitative and industry 4.0 in the conditions of knowledge economy. Studies in
qualitative assessment. As a result of their system accounting Systems, Decision and Control, 169(1), 65–72.
the most objective, complete, accurate, and reliable results Popkova, E. G., Sergi, & B. S. (2018). Will industry 4.0 and other
innovations impact Russia’s development? In B. S. Sergi (Ed.),
were obtained, according to which the highest level of Exploring the future of Russia’s economy and markets: Towards
competitiveness in the digital economy is typical for the sustainable economic development (pp. 51–68). Bingley. UK:
Kabardino-Balkaria Republic. Interim assessment results can Emerald Publishing Limited.
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Complexity and variety vs. Rationality. Springer.
nesses as well as to develop and implement highly effective Ragulina, Y. V. (2019). Priorities of development of industry 4.0 in
regional strategies for managing economic competitiveness modern economic systems with different progress in formation of
in the digital economy. knowledge economy. Studies in Systems. Decision and Control.,
169, 167–174.
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Retrieved September 09, 2019, from https://www.gks.ru/free_doc/
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The Methodology of Indicative Assessment
of the Effectiveness of Managing Region’s
Development in the Conditions of the Digital
Economy
the use of digital economy possibilities for maximization
of incomes and minimization of regional state budget Indicator Evaluation Efficiency Regional
expenses. Findings: It has been stated that, due to the development management Digital economy Russian
digital economy, the income of state budgets of the regions
regions of the North Caucasus Federal District of the
Russian Federation in 2018 is 6.19 times higher (as JEL Codes
compared to income without the use of digital technolo-
gies). At the same time, the potential for minimizing C51
D61 G14 H21 O18 O31 R11 R58
expenditures of their budgets has been rarely realized.
The digital economy allows reducing state budget
expenditures of the regions of the North Caucasus
Federal District of the Russian Federation by 480.64 1 Introduction
times. Originality/Value: The calculations showed that
In most modern macroeconomic systems, even with a high
degree of decentralization of power and, accordingly, eco-
V. K. Giraev (&)
Economic Sciences, Research Institute of Management, nomic independence of regions, they should follow a
Economics, Politics and Sociology, Dagestan State University of nationwide strategy of socio-economic development. Tran-
National Economy (DGUNH), Makhachkala, Russia sition to digital economy is a strategic priority of this
e-mail: vgaaf@rambler.ru development and therefore is forced by modern regions.
A. O. Ramazanova However, the regional context in which the digital economy
Economic Sciences, Department of Economics and Management, is being modernized may be and, apparently is, different.
Makhachkala Branch of the Moscow Automobile and Highway
State Technical University (MADI), Makhachkala, Russia It is possible to highlight the regions prone to building a
e-mail: radjab022002@mail.ru digital economy. They are highly innovative and have suf-
M. H.-H. Yusupova ficient venture capital investments. Regional businesses are
Department of Management, Dagestan State University (DSU), interested in implementing projects to create digital infras-
Makhachkala, Russia tructure independently and jointly with regional government
e-mail: usi585@yandex.ru
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 19
Y. G. Buchaev et al. (eds.), State and Corporate Management of Region’s Development in the Conditions
of the Digital Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-030-46394-6_4
20 V. K. Giraev et al.
bodies. The population of such regions has a high income, management of the development of a region in the digital
which allows the mass purchase of digital devices and economy and its testing on the example of the regions of the
technologies. The social and business environment in these North Caucasus Federal District of the Russian Federation.
regions is receptive and prone to innovation, including those
in the digital sphere. Digital modernization is organic in
these regions and comes naturally under the influence of the 2 Materials and Method
market mechanism with limited control and minimal regu-
lation by the state. As a result of content analysis (substantial analysis) of the
They can be opposed to the regions that are not inclined existing economic literature, we have identified three sci-
to build a digital economy. They have a deficit of venture entific and methodological approaches to assessing the
capital investment and low innovation activity. Public–pri- effectiveness of management of the region’s development in
vate partnerships and investments in infrastructure projects the digital economy.
in these regions are underdeveloped. The low standard of The first approach focuses on the very process of digital
living of the population prevents the spread of digital tech- modernization of the region’s economy. It involves an iso-
nologies and devices. Social and business receptivity to lated assessment of the effectiveness of public administration
innovation is low, and there may even be latent or overt of the digital economy separately from the rest of the public
resistance to innovation. Digital modernization in these management of the region. In this case, efficiency is deter-
regions encounters institutional barriers that prevent its mined through the ratio of the advantages of digital mod-
implementation. State regulators are forced to implement ernization of the economy (GRP and labour productivity
large-scale regional projects to prepare and adapt the popu- growth) to the costs associated with government financing of
lation to the conditions of the digital economy, and to the digital economy. This approach is presented in the works
stimulate digital modernization of entrepreneurship. of Nudurupati et al. (2016), Sanjuán et al. (2018),
Although, in both cases described, the transition to a Abdulkadyrov et al. (2017), Popkova et al. (2019), Sanjuán
digital economy contributes to the competitiveness of the et al. (2018), Sergi (2019).
region, the effectiveness of public management of the The second approach focuses on new markets emerging
region’s development will vary greatly. In the first case, in the digital economy. Here, additional revenues of the
thanks to comprehensive social and business support, out- regional state budget from the functioning of regional digital
standing results in the digital modernization of the region’s entrepreneurship are correlated with additional budget
economy can be achieved, while the main costs will be expenditures related to the financing of the digital economy.
borne by regional venture capital investors. In the second This approach is described in the research by Buchaev et al.
case, the process of digital modernization will take place at a (2014), Gadzhiev and Buchaev (2014), Khachaturyan et al.
slower pace due to social and business resistance, and will (2017, 2018), Popkova and Sergi (2019), Sergi et al. (2019).
require significant expenditures of the regional state budget. The third approach is to determine the extent to which the
In both cases, there is a risk of establishment or aggravation opportunities for digital modernization of the region’s
of the budget deficit and public management crisis of the economy based on the market mechanism are realized. The
region’s development (certainly, this risk is much higher in focus is on the ratio of public to private investment in the
the second case). digital economy: the higher the share of private investment
The strategic macroeconomic course for the transition to is, the higher the efficiency as an analogue of return on
the digital economy is designed to balance the regional investment is. This approach is considered by Petrenko et al.
economy and ensure a centralized transition of all the (2018), Popkova (2019), Popkova and Parakhina, Popkova
regions of the country to a new—fourth—technological and Sergi (2018).
paradigm. The crisis of public management of even one Thus, the existing scientific and economic publications
region can lead to a crisis of the entire national budget consider the digital economy as an investment project and
system, especially in the conditions of budget federalism assess the effectiveness of this project. In our work, we
implemented through interbudgetary transfers, like in mod- interpret the digital economy as a source of new opportu-
ern Russia. Therefore, it is in the interests not only of the nities for improving public management of the region based
regions themselves, but of the country as a whole, to mini- on the results of the fourth technological revolution. In this
mize the risk of the crisis described above. This highlights regard, we believe that in the conditions of the digital
the problems of assessing the efficiency of digital modern- economy, it is not the new direction of public management
ization of the region’s economy. that should be evaluated, but the use of new opportunities in
The purpose of this study is to develop a method of public administration of the region. As part of our method-
indicative evaluation of the effectiveness of public ology, we propose to be guided by the following formula:
The Methodology of Indicative Assessment of the Effectiveness … 21
Table 1 Logic of assigning Calculated indicator Formulas for calculation of indicators and conditions of their
values to Kg and Ke indicators application
depending on b coefficient values
in the regression model (b/y)*(100−x) 1 (b/y)/(100−x)
Kr b>0 b=0 b<0
Ke b<0 b>0
Source designed and compiled by the authors
Table 2 State budget revenues Region Regional state budget State budget expenditures Digital
and expenditures and the level of revenues of the region economy index
development of the digital
economy in the regions of the The Republic of Dagestan 107278 103582 45.52
North Caucasus Federal District The Republic of Ingushetia 23000.6 22883.4 40.42
of the Russian Federation in 2018
The Kabardino-Balkaria 29390.4 32087.4 47.06
Republic
The Karachay-Cherkessia 24039.2 23992.1 40.31
Republic
The Republic of North 27733.9 28119.5 41.99
Ossetia–Alania
The Chechen Republic 77477.4 77116.6 48.61
Stavropol Krai (District) 113885 113503 53.58
Arithmetic mean 57543.50 57326.29 45.36
Source compiled by the authors based on the materials of Rosstat (2019), Skolkovo (2019)
Ergde ¼ ðRg KrÞ=ðEg KeÞ; ð1Þ time period. However, statistical accounting of the digital
economy in Russia began only in 2017 in connection with
where Ergde is the effectiveness in managing the region’s the adoption of the program “Digital Economy of the Rus-
development in a digital economy; sian Federation”. Therefore, the Skolkovo Digital Economy
Development Index is only available for 2017 and 2018.
Rg—total revenues of the regional state budget; Therefore, in this study, we cannot calculate the regression
for each region separately and make regression models for
Kr—indicator of the use of digital economy possibilities for all the regions of the North Caucasus Federal District of the
maximization of regional state budget revenues; Russian Federation in 2018.