Economic development with the use of modern technologies

Recommendations for the Russian Federation

Digital economy, as well as digital technologies are essential for mankind, States and public
administrations. Their main advantage is the convenience of their use in our lives.
Technological breakthrough helps to solve many economic problems, such as: increasing
competition, lowering prices, increasing labor productivity, and many others.
The digitalization process in the Russian Federation is at its initial stages of formation and
further development. The state is trying to provide a solid “bedding” for building a huge
digital ecosystem within the state. It is worthy to mention the governmental goal of
achieving 99% Internet intrusion by 2024. This will significantly reduce the digital divide and
give people equal access to goods and services.

1. Overview
Over the last ten years, Russia’s development was described by low rates of investment and
modernization and turned out to be more reliant on impermanent factors, particularly
terms-of-exchange achievements reflecting world oil and gas costs. To accomplish
continuous economical growth in long-term, Russia needs to expand production
development and growth. This will require an extreme improvement in abilities to profit
from the nation's huge innovation potential. Generally, Russia's development abilities
remain too low, not just thinking about the potential as far as human assets and logical
scientific achievements, yet additionally with respect to what might be required for a
constant improvement of profitability all through the economy.
A considerable amount of the standard advancement execution indicators, such as: R&D
inputs, exchange, logical yield, licenses, and so on, are destitute and affirm the presence of a
development gap. Russian manufacturing companies are considerably less prone to
participate in development activities than their partners in OECD nations. Special cases to
the rule of law, excessively prohibitive guidelines and an absence of rivalry stay significant
disincentives to advancement and business venture. Physical and ICT foundations are
similarly feeble, which likewise impede advancement.

However, Russia has extraordinary qualities which are yet to evolve. It has an established
science and engineering customs and numerous focuses of greatness, especially in key
fields, for example, aviation,
atomic science and
engineering, and last but not
least - advanced programming.
Its tertiary schooling
achievement pace of 54% is
well over any OECD.
Nonetheless, restricted
collaboration between science,
training and industry hampers
development. Firms
themselves have too scarcely any abilities to advance, minimal absorptive limit with respect
to development, powerless connects to public exploration establishments and colleges, and,
most importantly, simple admittance to monetary rents that give barely any motivating
forces to enhance.

2. Innovation through a far-reaching strategy

Development strategy is again and again diminished to an attention on science and
engineering contributions, without completely considering the more extensive structure
conditions for development. This prompts an over-emphasis on the information supplying
side with inadequate consideration paid to the interest side. All things being equal, a more
extensive, entirely governmental way to deal with advancement strategy is required,
including more prominent degrees of co-appointment between various services and offices.
Government strategy additionally should be adjusted in a few viewpoints. To start with,
strategy should uphold development in both enormous firms and SMEs, as both play a
critical, frequently correlative, part in advancement frameworks. Firms additionally should
be better urged to put resources into their development. Business firms supported only 26%
of Russia's spending on R&D in 2010, well underneath the degrees of most OECD nations.
Second, there should be more grounded acknowledgment of the degree for and advantages
of advancement in low-tech and administrations businesses. Current development strategy
is excessively centered around high innovation, which implies it disregards huge pieces of
the Russian economy. Third, the development framework needs to open up more widely to
unfamiliar wellsprings of information, not alternative for Russian information but rather as
supplements. Russian examination strategy is progressively adapt to more noteworthy
worldwide co-activity and a comparable transparency is required on the side of learning and
collection of advancement abilities in firms. Fourth, more prominent consideration ought to
be paid to the interest side of information creation. Up until this point, an innovation push
theory has firmly affected development strategy and given a lot of accentuation to the
suppliers. This direction has genuine restrictions in a market economy, where the
information on clients is fundamentally significant in forming developments. At long last,
approach should locate a fitting balance between the requirement for industry rivalry and
unification. Both have potential for advancement, yet a lot of either will be hindering.

In doing these difficult acts, Russia needs to make and enable influencers. The government
can't and ought make an effort not to do all that itself however ought to rather empower
others to step up to the plate through proper incentives. In certain cases, this will mean
sustaining capacity-building, for example at the territorial level, where the specialists
frequently come up short on the vital abilities to figure and execute a bespoke development
strategy. A lot of R&D subsidizing is still distributed without sufficient responsibility or
reference to execution, and this prompts "waste". Prioritization and selectivity ought to be
utilized to center public R&D assets in focuses with a minimum amount of examination
greatness.

Russian development strategy is as of now moving in these directions. For instance, a more
extensive idea of advancement is being advertised by the Ministry of Economic
Development's Innovation Development Strategy of the Russian Federation to 2020. Various
new arrangements target firms, including measures that look to help regulatory hindrances
and improve structure condition. Measures that target significant state-owned endeavors
(SOE) prominently incorporate the Innovation Enforcement activity (2011-12), which obliges
SOE to figure and do advancement improvement methodologies. These activities ought to
be completely and successfully actualized.

3. Recommendations

 Support advancement in both large firms and SMEs and better urge firms to put
resources into development.
 Give more grounded acknowledgment to the degree and advantages of
advancement in low-tech and administrations enterprises.
 Open up the development framework all the more broadly to unfamiliar wellsprings
of information.
 Pay more noteworthy thoughtfulness regarding the interest side of information
creation.
 Find a fitting harmony between the requirement for industry rivalry and union.
 Popularization of online services that provide the most convenient services, which
will distract citizens from inefficient solutions in the analog world. Development of
broadband Internet access throughout Russia, which will reach the maximum
audience.
 Creation of competence centers for regulating information legislation. Conducting
debates and discussions in the social, economic and political fields. Adoption of
legislative initiatives "in advance" to avoid significant public losses when committing
crimes in cyberspace.
 Creation of competent institutions in the field of digital technologies.
Implementation of programs to improve professional skills and competencies in
state institutions and commercial organizations owned by the state.
 Reform the education system by introducing educational programs that meet the
needs of employers. Development of interdisciplinary learning.
 To meet the demand for digital products, it is necessary to have some basic income
for the population of the country, which would allow citizens to make significant
expenditures on digital goods and services. 2. Allocation of additional investments to
companies that specialize in creating digital solutions that will successfully equip the
digital environment

4. Conclusion
The development and implementation of digital technologies in public life is the most
difficult task in Russia. Problems related to the digital economy require a comprehensive
solution in many areas. The Digital economy program, which is intended to be the basis for
Russia's digital transformation, partially reflects the necessary requirements, but it certainly
needs to be refined and expanded in the areas it covers.

The main problem that needs to be solved by the entire apparatus of officials is to ensure
the stability of the economy and increase the growth rate. Real incomes of the population
can become a serious problem in digital Russia, since the consumption of digital goods and
services will not completely replace analog consumption, so the population will need
additional funds for spending. The continued decline in real incomes will have a negative
impact on the development of the digital economy and the economy as a whole.