The Role of Digitalization of the Regional Economy in Shaping the Trajectory of Sustainable Development

Dmitry A. Kozlov () and Sergey A. Grachev ()
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Dmitry A. Kozlov: Vladimir State University named after Alexander Grigorievich and Nikolay Grigorievich Stoletovs
Sergey A. Grachev: Vladimir State University named after Alexander Grigorievich and Nikolay Grigorievich Stoletovs

Journal of Modern Competition, 2025, vol. 19, issue 4, 113-129

Abstract: The article is devoted to the study of the role of digitalization of the regional economy in shaping the trajectory of sustainable development using the example of federal districts of Russia. The analysis focuses on the relationship between digital technologies, innovations and environmental indicators in the context of global challenges such as climate change, social inequality and the consequences of the pandemic. The authors conduct a comprehensive analysis of data for 2014–2023, including the dynamics of Internet activity of the population, the introduction of advanced production technologies and the volume of water resources use. The methodological basis is regression analysis, which allows us to identify correlations between the level of digitalization, technological progress and environmental burden. The results of the study demonstrate that digitalization is a key driver of technological development: the growth of Internet activity is associated with an increase in the number of technologies used at the national level. However, the environmental impact of digital transformation is ambiguous. For example, in industrially oriented districts (Ural, Siberian), the introduction of technologies is accompanied by an increase in the volume of reused water, while in agro-regions (Southern Federal District), digitalization contributes to the optimization of resources. Significant regional disparities were revealed: the maximum growth of innovation was noted in the Southern Federal District (+65%), the minimum – in the Far Eastern District (+11%), which is due to economic specialization and infrastructure limitations. The theoretical significance of the work lies in the development of the concept of sustainable development through the integration of digital solutions and environmental practices. Practical conclusions include the need for differentiated strategies for regions that combine centralized support, cluster initiatives and the introduction of circular economic models. The article is relevant for government bodies, researchers and the business community interested in reducing the man-made burden and overcoming the center-periphery gap in the context of digital transformation.

Keywords: digitalization; sustainable development; regional economy; environmental burden; regression analysis (search for similar items in EconPapers)
Date: 2025
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DOI: 10.37791/2687-0657-2025-19-4-113-129

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