Digital Economy as an Environment for Developing Innovation Activity of Small Businesses

• Main Authors: Bilozubenko Volodymir S., Gorodnytskyi Roman O.
• Format: Article
• Language: English
• Published: PH "INZHEK" 2021-06-01
• Series: Problemi Ekonomiki
• Subjects: digital economy; digital transformations; digitalization; information technologies; innovation activity; small business
• Online Access: https://www.problecon.com/export_pdf/problems-of-economy-2021-2_0-pages-103_110.pdf
• ISSN: 2222-0712; 2311-1186

Modern economic systems are being transformed under the influence of new technological trends. A number of important technology trends are related to information technologies (IT). Their widespread use leads to the emergence of a new type of economy, the digital economy (DE), which determines the scope and new directions of innovation and business. This opens up great opportunities for small innovative businesses, which can play a major role in its formation. The article is aimed at clarifying the essence and segmentation of DE and presenting it as an environment for developing innovative activity at small businesses. The essence of IT, software, and information systems is specified. The concept of IT is explained, and the essence of digitalization and digital transformations is specified. The essential features of DE are identified, and its components (IT, infrastructure, and business) and the basis (social networks, big data devices, etc.) are specified. DE is based on a technological "core" (IT, various technical platforms, physical technologies); has a functional "core" (digital platforms, systems of workgroup computing, process automation); encompasses economic activity; includes a number of goods and services that are critically dependent on IT. It is substantiated that IT creates a special virtual environment and new forms of markets. It is suggested to segment DE, for example:: e-commerce; e-marketing; e-procurement; electronic auctions; electronic infrastructures; e-logistics; electronic medicine; e-education; electronic trading; electronic banking; electronic insurance. The emergence of FinTech, "smart farms", "smart factories", "smart warehouses", "smart things", "smart home", "smart jobs", etc. is also noted. The obtained segmentation determines the directions of structural development of DE. It is substantiated that IT creates opportunities for innovative activity of small businesses and should be considered as corresponding environment. The understanding of the development of innovation activity and its areas in DE are clarified. In this context, the lines of the state regulation of DE are defined.