Global Digital Transformation and I ts Goals: Declarations, Reality and the New Growth Mechanism

Olga Koshovets and Nikolai A. Ganichev ()

Economics of Contemporary Russia, 2019, issue 4

Abstract: The paper seeks to understand what purposes underlie the global digital economy project, what objective requests it is responding to and what economic tasks it really intends to solve. We try to show that the main beneficiaries of global digitalization will be the major TNCs in electronics, ICT and Internet sphere as well the financial sector, which are faced with a profound transformation through the use of ICT based financial technologies. The extremely effective model of innovation developed by ICT giants by the beginning of the 2000s, which ensured high growth rates over decades, have come to exhaustion, reaching technological limitations. In order to maintain the rental income mechanism they have created, the ICT giants have to move to an extensive development model by creating numerous new mass markets, and transfer the capital surplus, which can no longer be developed within the ICT sector, into an area with higher growth potential. It appears that this area will be the financial and banking industry and the global project of digital economy serves to solve the mentioned tasks. The near goal is to consolidate asserts globally for building a fundamentally new digital infrastructure based on microelectronic and software products on a worldwide scale. This extensive infrastructure is indispensable condition for the further development of new generation of financial and organizational innovations which is conceptualized under “the forth industrial revolution†brand and is believed to create new mechanism of economic growth.

Date: 2019
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