Digital challenges in the economy and their impact on regional development

Abstract

Introduction. Digital transformations that have occurred in socio-economic development of entire society have been proven, so that direct consumers of digital products and services are population gaining access to the Internet, certain applications, programs and databases that help to improve the quality of life, make it more comfortable in conditions of turbulent development and quarantine restrictions caused by the COVID-19 pandemic. Development of digital opportunities has emphasized importance of supporting this area from regulatory and legislative framework, in particular its improvement and regulation, which will be reflected in improving population’s well-being and regional development. Aim and tasks. The aim of the article is devoted to consideration of theoretical and practical foundations of ongoing changes in the economy of territorial economic systems under the influence of rapid spread of innovative technologies, in particular digital transformations and digital challenges, their impact on regional development. Results. In the given article we have considered approaches and individual directions concerning certain changes in socio-economic direction of society’s development under the influence of digital transformations. The factors and indicators influencing region’s level of assessment of digital capabilities are indicated. A possible scenario for transformation of digital economy is given, taking into account forms of involvement in digitalization process contributing to the development of digital network and business, formation of new approaches to sustainable strategic development of the regional economy. The role of investment component in promoting and developing digital opportunities, which are reflected in population’s social well-being, has been proven. It has been established that the digital development of society is formed under the influence of the relationship between government and business, the use of the latest information technologies. Conclusions. The widespread dissemination and implementation of digital opportunities is the key to sustainable development of the region, which affects the improvement of business, interaction with the authorities and the growth of the population's well-being. Expanding access to the Internet, levelling user opportunities will accelerate implementation of digital economy and achievement of positive socio-economic changes. It is digitalization of the economy and society that is the main tool for development. A systematic approach to the usage of digital technologies will act as a stimulating factor in the development of society and economy at different levels: national, regional (territorial) and local. In addition, the systematic usage of digital technologies has an impact on raising the level and improving population’s living conditions.