The Strategic Impact of the Economy Digital Transformation Subsidized Regions Socioeconomic Development

Aslan Z. Midov () and Daria N. Gavrilina ()

Administrative Consulting, 2026, issue 4

Abstract: This article examines the digitalization and innovative development of the Russian economy and subsidized regions. The objective of the study is to conduct a strategic assessment of the digitalization impact on the socioeconomic development of subsidized regions of Russia. The theoretical basis of the study is an analysis of domestic and international scientific literature on digitalization, defining the regional subsidization context, and examining models of technology’s influence on economic growth. In relation to the digital transformation of a subsidized region, the study utilizes the theory and methodology for developing a regional strategy developed by V. L. Kvint. Therefore, national and regional trends in digitalization and innovation in the Russian economy, including subsidized regions, were analyzed. The results of panel regressions with fixed and random effects showed that digital transformation has a statistically significant positive impact on the socioeconomic development of subsidized regions of Russia, although the nature of this impact is heterogeneous. Importantly, digitalization is beginning to produce tangible economic benefits only in the most developed regions. Thus, it can be concluded that in highly subsidized regions, digital infrastructure is being created but is not being fully utilized due to a shortage of qualified personnel, weak entrepreneurial activity, and a limited institutional environment. For such regions, digitalization becomes a development factor only when other socioeconomic conditions are combined.

Date: 2026
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