Baltic Journal of Economic Studies (Jun 2024)
DEVELOPMENT OF THE SMART ECONOMY AS THE MAIN SOURCE OF COMPETITIVENESS AND SUSTAINABLE DEVELOPMENT
Abstract
The development of the smart economy is a topic of great relevance in the contemporary world, particularly in the context of rapid technological advancement and digital transformation. The smart economy is predicated upon the utilisation of sophisticated technologies, including artificial intelligence, the Internet of Things, data analytics, blockchain, and others, with the objective of optimising processes across a multitude of domains, including production, transportation, healthcare, education, energy, trade, and others. The principal advantages of the advancement of the smart economy are that the utilisation of the most recent technologies permits the automation of processes, the optimisation of resources and the enhancement of production efficiency. Those countries and companies that adopt smart technologies proactively can secure a competitive advantage in the market through innovation supported by digital solutions. The objective of this article is to conceptualise the development of the smart economy as the primary source of competitiveness and sustainability. The successful development of the smart economy requires the right management strategy, investment in innovation and education, and partnership between public authorities, the private sector and the public. The growing role of the smart economy defines it as a key factor of competitiveness and sustainability for countries and companies in the modern world. The research methodology includes the integration of different philosophical methods (axiological, systemic, synergistic) with the Agile methodology, which has made it possible to comprehensively analyse the development of the smart economy as the main source of competitiveness and sustainability. Agile methodology, as a methodology of complex adaptive systems, flexible management and innovative components, has allowed to show the practical levers of using mechanisms to ensure sustainable growth, the role of information technologies in the development of a smart economy to achieve the goals of ESG (environmental, social and corporate management) of sustainable development. Research results. The emergence and development of the smart economy as an economy of knowledge, innovation, science and progress, based on intelligent machines and information networks, platforms and tools, which is an integral part of the innovative economy, is presented; the criteria and advantages of the smart economy are defined. The directions of development of the smart economy, its potential impact on competitiveness and sustainability are identified. Among the directions of development of the smart economy, the symmetric economy is distinguished, which is based on symmetric relations between economic subjects and objects, which are the driving force of economic development. The symmetry of the economic structure is a model for the development of a smart economy, a source of economic development, a subject-centred smart economy. It turns out that the smart economy includes the development of the main trends of the latest technologies, such as artificial intelligence, the Internet of Things (IoT), blockchain and data analytics, to optimise production, manage resources and create effective business models.
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