The impact of digital transformation on the economy: technological innovation and efficiency

Abstract

The investigation into the evolution of the digital economy has yielded profound insights into its fundamental nature, the pivotal drivers guiding its advancement, as well as the trajectories characterizing the metamorphosis of economic operations within organizations. The outcomes of this inquiry are primed to underpin the effectiveness, calibre, and dependability of information-driven and analytical underpinnings, indispensable for informed managerial judgments geared towards nurturing the inventive potential inherent in the digital economy. Furthermore, these findings aim to address the impediments that curtail seamless digital transformation. Among the preeminent findings engendering novelty in this research, the subsequent elements stand out: the formulation of a comprehensive framework for the delineation and taxonomy of economic activities within the digital economy domain, encompassing both a classification schema for economic pursuits intrinsic to the digital sector and another for economic endeavours facilitated by the integration of digital technologies. A comprehensive array of metrics has been systematically devised to assess the evolution of the digital economy. This framework encompasses a gamut of indicators derived from information and communication technology (ICT) statistics, national economic accounts, fixed asset investments, and foreign trade, as well as indicators custom-developed in consonance with the proposed taxonomy of economic pursuits within the digital economy. This classification system comprises five distinct blocks, each comprising discrete sets of indicators: those pertaining to the ICT sector, the digital sector, organizational outlays on digital technologies, digital proficiency of the workforce, and a holistic gauge of the digital economy. An intricate methodology has been formulated to quantitatively evaluate the state, progression, and competitive standing of the ICT sector. This methodological construct encompasses algorithms for the computation of physical quantities of gross value added and fixed capital investment segregated by the nature of economic undertakings associated with the production of ICT goods and provisioning of ICT services. Also included are computations for the index of fixed capital formation rate, alongside indicators appraising the extent of the economy's engagement with international trade concerning diverse digital products.