The digital economy and its role in ensuring sustainable economic growth: institutionalizing digital innovation

Abstract

In modern conditions, the digital economy is not only an important driver of innovative development, but also a necessary prerequisite for ensuring sustainable economic growth. The relevance of the topic is due to the need to overcome barriers and challenges that arise on the path of digitalization, as well as the importance of creating effective institutional mechanisms to support digital innovations.

The purpose of the study is to analyze the role of the digital economy in ensuring sustainable economic growth and develop approaches to the institutionalization of digital innovations, taking into account modern challenges and opportunities.

The study uses an interdisciplinary approach, which includes methods of system analysis, comparative analysis, statistical methods for assessing the impact of digital technologies on the economy, as well as structural analysis to identify key barriers and problems.

The results of the study establishes that the digital economy creates new opportunities for business, stimulates innovation and increases production efficiency. At the same time, key challenges that accompany digitalization are identified, in particular, inequality of access to technologies, low levels of digital literacy and imperfect regulatory framework. Particular attention is paid to the role of institutional mechanisms, which are critically important for ensuring the sustainable development of the digital economy. The article also provides practical recommendations for eliminating barriers that hinder the effective implementation of digital innovations.

The conclusions of the study confirm the need to strengthen institutional mechanisms to support digital transformation. This includes improving legislation, developing digital infrastructure and increasing the level of digital literacy among the population. A comprehensive approach to addressing these issues will ensure the sustainable development of the digital economy and contribute to reducing socio-economic inequality.