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Vol. 40, Nº 74 (2022), 815-829
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Recibido el 15/07/22 Aceptado el 25/09/22
Impact of digitalization on the
protection and implementation of the
national economic interests
DOI: https://doi.org/10.46398/cuestpol.4074.45
Liudmyla Pankova *
Dmytro Uzbek **
Yevhen Panchenko ***
Alla Samoilenko ****
Irina Privarnikova *****
Abstract
The purpose of this article is to study the impact of
digitization on the economic system, as well as the protection
and implementation of national economic interests. To achieve
this goal, scientic and special methods such as analysis and
synthesis were used; this methodology also allowed to understand
the essence and distinguish the approaches to the concept of digitization,
generalization and systematization, which made it possible to clarify the
main objectives of digitization, its benets and risks. The challenges and
opportunities of digitization are identied, as well as the main problems
hindering its development in the context of protection and realization of
economic interests in Ukraine. It is noted that the solution of these problems
will lead to signicant momentum in the development of digitization. It is
concluded that, among the main benets of digitization is the generation
of Internet platforms for the transmission of cutting-edge information and
knowledge.
Keywords: digitalization; digital transformation; digital development;
national economic system; national economic interests.
* Doctor of Economic Sciences, Associate Professor, Professor of the Department of Management and
Business Administration, Cherkasy State Technological University, 460, Shevchenko av., 18006,
Cherkasy, Ukraine. ORCID ID: https://orcid.org/0000-0003-2953-608X
** Postgraduate Student of the Department of Management and Business Administration, Cherkasy State
Technological University, 460, Shevchenko av., 18006, Cherkasy, Ukraine. ORCID ID: https://orcid.
org/0000-0002-3906-0284
*** Doctor of Economic Sciences, Professor, Professor of the Department of International Management,
Kyiv National Economic University named after Vadym Hetman, 54/2, Prospect Peremogy, 03057,
Kyiv, Ukraine. ORCID ID: https://orcid.org/0000-0002-8650-8029
**** PhD in Economics, Doctoral Student of the Department of International Management, Kyiv National
Economic University named after Vadym Hetman, 54/1 Prospect Peremogy, 03057, Kyiv, Ukraine.
ORCID ID: https://orcid.org/0000-0001-9696-985X
***** PhD in Economics, Associate Professor, Assistant Professor of the Department of Marketing and
International Management, Oles Honchar Dnipro National University, 72, Gagarin Avenue, 49005,
Dnipro, Ukraine. ORCID ID: https://orcid.org/0000-0001-7022-7946
816 Liudmyla Pankova, Dmytro Uzbek, Yevhen Panchenko, Alla Samoilenko y Irina Privarnikova
Impact of digitalization on the protection and implementation of the national economic interests
La inuencia de la digitalización en la protección y
realización de los intereses económicos nacionales
Resumen
El propósito de este artículo es estudiar el impacto de la digitalización
en el sistema económico, así como la protección e implementación
de los intereses económicos nacionales. Para lograr este objetivo, se
utilizaron métodos cientícos y especiales como el análisis y la síntesis;
esta metodología permitió además comprender la esencia y distinguir los
enfoques del concepto de digitalización, generalización y sistematización,
lo que permitió aclarar los principales objetivos de la digitalización, sus
benecios y riesgos. Se identican los desafíos y oportunidades de la
digitalización, así como los principales problemas que obstaculizan su
desarrollo en el contexto de la protección y realización de los intereses
económicos en Ucrania. Se observa que la solución de estos problemas
conducirá a un impulso signicativo en el desarrollo de la digitalización.
Se concluye que, entre los principales benecios de la digitalización se
encuentra la generación de plataformas de Internet para la transmisión de
información y conocimientos de vanguardia.
Palabras clave: digitalización; transformación digital; desarrollo digital;
sistema económico nacional; intereses económicos
nacionales.
Introduction
At the current socio-economic stage of development of countries there is
a rapid and powerful spread of digitalization processes, which are massive
and inuential and do not bypass any area of activity. Thus, within such
a situation, the competitiveness and eciency of the national economic
system has a stable dependence on the ability to generate and successfully
implement digital innovations and technologies in all its components.
Today, digitalization is the most relevant aspect of modern economic
functioning of countries and their development, is seen as a leading
mechanism and tool for achieving future successful and eective results
at all levels: from global and national, to regional and individual. Due to
digitalization, signicant transformations are taking place today, which are
manifested in the ability to analyze and forecast the activities of various
economic systems, optimize management processes and operations, save
resources and more.
Thus, despite the lack of stability in the world, there is a permanent
increase in demand for digital services against the background of increasing
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CUESTIONES POLÍTICAS
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costs for the development and implementation of various digital innovations
and technologies, as well as lower prices for mobile communications and
rapid Internet access, which is inevitable will lead to further growth in
popularity and development of digital technologies.
Activation of the process of application of digital innovations in such
conditions provides processing of large amounts of information, which are
constantly increasing and contribute to more ecient use of resources. The
growth of the investment component of digital development leads to the
rapid spread of digital technologies in our country, in the areas of articial
intelligence, robotics, mobile communications and the Internet, etc. The
above situation leads to an understanding of the need to study the nature
and directions of the impact of digitalization on the national economic
system, the protection and realization of its interests.
1. Literature Review
In modern economic conditions there is a total digitalization of economic
activity of subjects. Digitization is one of the leading modern trends, dating
back to 1997 (Gilster, 1997). The digitalization of the economy as an integral
part of modern society is the object of study in the works: Cosmulese et
al. (2019), Djakona et al. (2020), Dubyna et al. (2022), Garafonova et al.
(2021), Grosu et al. (2021), Kholiavko et al. (2021); Kholiavko et al. (2022);
Shaposhnykova et al. (2021).
Digitization can be considered in broad and narrow meanings.
Digitization in a broad sense is the process of implementing digital
technologies and transmission systems at the level of telecommunications
networks, switching and control facilities that provide transmission and
distribution of information ows in digital form (Lagodiienko et al. (2021),
Liutikov et al. (2021), Popelo et al. (2021)). Digitization in the narrow sense
is the process of transition from analog to digital presentation (Reis et al.,
2018; Sebastian et al., 2017).
An example of such a narrow (technical) interpretation of digitalization
can be the transition from analog television to digital television, the
transition from conventional mobile phones to smartphones.
The process of digitalization is gradually demonstrating the transition
from the industrial to the post-industrial era of society (from “Industry
3.0” to “Industry 4.0”), which in modern economics and legislation digital
economy, cannot but aect national economic interests Shaposhnykova et
al. (2021), Shkarlet et al. (2019), Zhuk et al. (2019), Yakushko et al. (2021).
The genesis of the digital economy in world economic theory goes back
to the report of the American professor J. Stiglitz at the Davos Economic
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Liudmyla Pankova, Dmytro Uzbek, Yevhen Panchenko, Alla Samoilenko y Irina Privarnikova
Impact of digitalization on the protection and implementation of the national economic interests
Forum in 2015: they raised the question of whether there should be an
individual for the economic system or “the economy should be for the
individual” (Zybareva et al., 2021: 16).
In the rst case, the individual is actually a functional unit that serves
the economy, and estimates of its development are fair to use indicators
such as GDP, investment in xed assets, unemployment and more. In the
second case, the point is that the economy is given the role of a superservice
or marketplace, with which the individual builds an interaction based on
personal interests and preferences. To assess the economy as a marketplace
requires completely dierent indicators: investment in digital technologies,
the level of development of digital infrastructure, public access to the
Internet, etc.
Analysis of the scientic literature makes it possible to understand that
the digital economy is perceived as a certain ideal system in which a large
number of entities and institutions are almost completely digitized, and
the whole value chain is based on the principles of smart manufacturing
(Djakona et al. (2021), Dubyna et al. (2022), Irtyshcheva et al. (2021),
Kholiavko et al. (2021).
In domestic practice, in contrast to global trends, the development of
the digital economy has a fairly pronounced administrative character from
top to bottom (Samoilovych et al., 2021; Tulchynska et al., 2022; Abramova
et al., 2021).
At the same time, in foreign practice, the initiative and development of
the methodology of digitalization of the national economy lie on the side
of business - because it is he who needs to comfortably pursue private
commercial interests, and customers - to receive products and services
in a new format (Grosu et al., 2021), (Reis et al., 2018), (Vidruska, 2016).
The digital economy in the methodological plane is closely connected
with articial intelligence and machine communications (robots) as a
fundamental component of the construction of the “Industry 4.0” system.
In the domestic scientic literature, researchers Shkarlet et al. (2019),
Zhuk et al. (2019), Yakushko et al. (2021) emphasize the state’s eorts to
develop digital infrastructure to scale digitalization processes in the market
space.
Today, the processes of digitalization are gaining signicant development
and are gradually penetrating all sectors of the economy and public life. In
general, the vast majority of domestic studies by Abramova et al. (2021),
Gonta et al. (2016), Grigoraș-Ichim et al. (2018), Kozak et al. (2022), Popelo
(2017) focuses on the fact that Ukrainian society is actively preparing for
the transition to a new socio-economic system. From the standpoint of
domestic economists - the country must soon move to a new technological
way, resulting in a global change in socio-economic formation, namely: the
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transition from a market model of economic development to forecasting,
based on big data analysis, cognitive technologies for demand forecasting
and planning oers. The key gures of the new technological device will be
the developers of digital platforms that will satisfy the economic interests
of all participants.
Socio-economic development of the country takes place in a conict
of interests of dierent groups and the search for compromises, so it is
necessary to understand the structure of interests Kosach et al. (2022),
Okano-Heijmans (2013), Zhavoronok et al. (2022). National economic
interests are one of the central guidelines for the development of economies
in all countries. Adoption of legislative acts, implementation of socio-
economic reforms, support of certain sectors of the economy, decisions
on accession to international economic organizations, association within
integration groups - all this must be done in accordance with national
economic interests.
The current trend of the digital economy is characterized by the
formation of a new paradigm of scientic and technological development, is
a consequence of penetration into all spheres of life of articial intelligence
and IT. A signicant factor in the transition to a new socio-economic
system is the large-scale digitalization of the economy, aecting public
and multiple private economic interests of dierent groups, forming new
economic interests (Frieden, 2017; Grabowski, 2000; Hryshchenko, 2009;
Jung, 2016).
To manage the processes of modernization, it is necessary that the
content of new economic interests be adequate to the objective needs
associated with the progress of society as a whole, and that these interests
are expressed in eective motivations. Coherence of economic interests,
their balance is the main content of economic life of society.
Today, science does not have a single opinion about the concepts,
structure and hierarchy of transforming economic interests and ways to
reconcile them in the context of digitalization.
Issues of the impact of digitalization on the functioning and development
of the economic system of the state and the protection of its interests are
becoming increasingly important. Understanding this scientic position
determined the topic and purpose of this study.
The purpose of this article is to study the impact of digitalization on the
national economic system, as well as the protection and implementation of
its national economic interests.
To achieve this goal in this study used such general and special
methods as analysis and synthesis (to understand the essence and
distinguish approaches to the concept of “digitization”), generalization and
820
Liudmyla Pankova, Dmytro Uzbek, Yevhen Panchenko, Alla Samoilenko y Irina Privarnikova
Impact of digitalization on the protection and implementation of the national economic interests
systematization (to clarify the main objectives of digitalization, its benets
and risks), graphic (for a clear picture of approaches to understanding the
category of “digitalization”, challenges, opportunities and main problems
of digitalization in the context of protection and realization of national
economic interests).
2. Results
Acceleration of scientic and technological progress leads to the
emergence and rapid spread of new information technologies in society - the
so-called digitalization of society. The economic systems of many countries
are in search of eective ways to use the achievements of digitalization of
society for economic growth. The basis for the development of the digital
economy has been created for several decades. Today, the widespread use
and use of information technology and the Internet has led to the formation
of information technology paradigm of society.
Today, many countries around the world are trying to restructure their
economies on a digital platform. The main task of any state is to improve the
quality of life of society. Thanks to global informatization, it is possible to
simplify and mechanize the functionality and many processes in all spheres
of life. Modern digital technologies are strategically important because they
allow to bring the management of the state, economy and development of
territories to a completely new technological level. Digital transformation
is one of the national goals of the country’s development and should
contribute to the breakthrough development of the country, improving the
living standards of the population, taking into account national economic
interests.
The current stage of development is characterized by increasing the
impact of global problems and security issues, and thus ensuring the
eective functioning of national economic systems, as well as the protection
and implementation of its national economic interests becomes extremely
important. Currently, the leading role among the structural components
of national economic systems is played by such as creative, innovative,
technological, digital, the successful combination of which contributes to
the success of business processes and activities.
Today, the leading aspects of the development of countries are
technological, which provide new opportunities and identify new directions
in this area, which makes them relevant for modern research. Achieving the
goal of the study should begin, in our opinion, with the study of the essence
of the concept of digitization and approaches to understanding it, for which
we consider the views on this issue of leading researchers and information
from scientic sources, the results are shown in Fig. 1.
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Fig. 1. Approaches to understanding the category of “digitalization Source:
generated by the authors
Thus, according to the information on Fig. 1, we come to the
understanding that there is no single denition of this denition today, and
dierent scholars interpret it dierently. In general, digitalization, in our
opinion, should be understood as a process of signicant transformations
within various spheres of economic activity through the use of ICT, the
implementation of the mechanism of which provides eciency, protability
and success.
For the national economic systems of all countries of the world, the
formation and implementation of the mechanism of digital transformation,
the use of digitalization tools is now an urgent task that will help increase
the competitiveness of states and gain new competitive advantages.
The study of priority goals and objectives of digitalization (Fig. 2) and
its impact on the activities of the national economic system, protection
and realization of its interests is now relevant. It is important to study and
understand the essence of this category, as well as the challenges, risks and
problems that hinder these processes, and the opportunities and benets
that can be gained from them.
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Liudmyla Pankova, Dmytro Uzbek, Yevhen Panchenko, Alla Samoilenko y Irina Privarnikova
Impact of digitalization on the protection and implementation of the national economic interests
Fig. 2. The main objectives of digitalization and their impact on the activities of
the national economic system. Source: generated by the authors
Thus, the main reason for the digitalization of national economic
systems should be considered globalization. It is necessary to identify the
characteristics of domestic processes of digital transformation through
their goals. According to Fig. 2, the main objectives of digitalization should
include the following:
• transformation of economic activities into ecient, successful and
competitive;
• increase in economic growth and investment activity;
• digital updating of industrial systems and their operational activities,
creation and introduction of high-tech industries;
• use of available human potential;
• formation, formation and development of digital entrepreneurship;
• involving the population in digital technologies and processes,
expanding access to them and using their opportunities and benets.
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As a result, those activities of the economic system that use digital
technologies are developing faster at a lower cost and with a higher level
of quality. Many of them, such as education and health, transport system,
etc., are updated through the involvement of digitalization processes,
increase their success, protability, competitiveness, move to a new, higher
level of signicance, value and quality, which cannot but positively aect
development national economic system and society.
In the process of formation of domestic digitalization, issues related
to digital transformation, which should be understood as the process of
introduction of digital technologies in the situation of digital economy to
improve and renew the individual, business, society and the country as a
whole, need further study and dissemination.
With this in mind, it is necessary to explore such aspects of digitalization
as the challenges and opportunities that accompany its formation and
development, as well as the main problems that hinder the transformation
of the domestic economic system into digital (Fig. 3). Solving the identied
problems will lead to the eective implementation of digitalization.
Fig. 3. Challenges, opportunities and main problems of digitalization in the
context of protection and implementation of the national economic interests.
Source: generated by the authors based on Ukraine 2030E is a country with
a developed digital economy. URL: https://strategy.uifuture.org/kraina-z-
rozvinutoyucifrovoyuekonomikoyu.html#summary.
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Liudmyla Pankova, Dmytro Uzbek, Yevhen Panchenko, Alla Samoilenko y Irina Privarnikova
Impact of digitalization on the protection and implementation of the national economic interests
In this article, in our opinion, it is necessary to pay attention to the study
of the benets and risks of digitalization, and with this in mind, to clarify the
main directions of its impact on the protection and realization of national
economic interests (Fig. 4).
Fig. 4. Advantages, risks and impact of digitalization on the protection and
implementation of the national economic interests. Source: generated by the
authors based on Digital Agenda of Ukraine - 2020.
Based on the study of scientic sources, the advantages of digitalization
were: the possibility of using articial intelligence and its further rapid
development, the emergence of innovative approaches to management
and its methods, the formation of Internet platforms to generate and
share information, knowledge and more. However, it should be noted the
possibility of negative aspects of digitalization, so among the risks of its
development, which signicantly aect the protection and realization of
national economic interests, should be noted: violation of privacy, which
is unacceptable for a democratic society, threat to national security and
digital independence.
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Conclusion
This study claried the essential aspects of the concept of “digitalization”
and the main approaches to understanding it. As a result, it is concluded that
there is no consensus on the interpretation of this denition and its author’s
understanding is presented, according to which digitalization is a process
of signicant transformations within various spheres of economic activity
through the use of ICT. The main goals of digitalization are highlighted
and characterized, and the direction of their impact on the activities of the
national economic system are claried.
The main problems that hinder the development of digitalization, it is
found that overcoming them will help increase the eciency and success
of this process. The advantages and risks of digitalization for the country’s
economy and society are presented. Thus, the main benets of digitalization
include the generation of Internet platforms for the transmission of
information, knowledge, etc., the spread of articial intelligence, the
formation of innovative directions for the implementation of management
processes; the main risks are an increase in the level of threat to the privacy
of the life aspects of the country’s population, the national security of the
state and its digital independence. Based on them, the directions and nature
of the impact of digitalization on the protection and realization of national
economic interests are determined.
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Esta revista fue editada en formato digital y publicada
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