The relationship between social innovation and digital economy and society

Abstract

The information age is also an era of escalating social problems. The digital transformation of society and the economy is already underway in all countries, although the progress in this transformation can vary widely. There are more social innovation projects addressing global and local social problems in some countries than in others. This suggests that different levels of digital transformation might influence the social innovation potential. Using the International Digital Economy and Society Index (I-DESI) and the Social Innovation Index (SII), this study investigates how digital transformation of the economy and society affects the capacity for social innovation. A dataset of 29 countries was analysed using both simple and multiple linear regressions and Pearson's correlation. Based on the research findings, it can be concluded that the digital transformation of the economy and society has a significant positive impact on the capacity for social innovation. It was also found that the integration of digital technology plays a critical role in digital transformation. Therefore, a country's progress in digital transformation is beneficial to its social innovation capacity. In line with the research findings, this study outlines the implications and possible directions for policy.