The role of state in promoting investments in digital development

Abstract

The article outlines the role of the state in the context of the formation of an institutional environment conducive to the development of digital economy. The author points out that the financial and digital segments of the digital economy's infrastructure operate as a single coherent mechanism based on the recombination of their elements, creating a favorable environment for investment activities. The article emphasizes the importance of using modern digital technologies in overcoming information asymmetry, increasing transparency of decision-making processes by state institutions and in the context of attracting investments. The introduction of an electronic document flow system between government institutions is considered as a mechanism to ensure overcoming the information asymmetries, which would positively affect the quality of administrative services. The author analyzes open information bases as a mechanism for ensuring transparency of decision-making process by government institutions, which helps improve the investment climate. Digital infrastructure has a significant impact on the process of selection of investment projects and potential investors in public sector; also, it contributes to overcoming the ambiguity of the decision-making process through mechanisms that allow the rapid involvement of a wide range of independent experts. It is noted that digital channels create opportunities for the establishment of cooperation between state-owned companies and private investors, while financial mechanisms allow the incorporation of private capital into investment projects. The author highlights the importance of introducing an appropriate state investment policy considering avoidance of the negative impact of investment activity on the socio-economic life in this country. Emphasized the importance of the investment component in the implementation of a digital development strategy under the schemes of government-to-government, government-to-business, and government-to-society.