Authors

  • Murotjonova Mubina Dilshod Qizi
    Jizzakh Branch Of The National University Of Uzbekistan Named After Mirzo Ulugbek, Faculty Of “Psychology”, 5230100 - Economy (By Industries And Sectors), Student Of Group 140-20, Uzbekistan

DOI:

https://doi.org/10.71337/inlibrary.uz.ijasr.130931

Keywords:

Digital economy models transformation e-government national innovation systems

Abstract

Recently, the concept of “digital economy” has been used a lot. Indeed, in many developed countries, the digital economy has significantly influenced their development factors. The digital economy plays an important role in the life of society. So, this article is about the digital economy, which analyzes important issues such as the nature of the digital economy, the tasks and goals of the digital economy, the experience of foreign countries in the formation of the digital economy, and the obstacles to the development of the digital economy in Uzbekistan.


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Volume 03 Issue 05-2023

55



International Journal of Advance Scientific Research
(ISSN

2750-1396)

VOLUME

03

ISSUE

05

Pages:

55-68

SJIF

I

MPACT

FACTOR

(2021:

5.478

)

(2022:

5.636

)

(2023:

6.741

)

OCLC

1368736135















































A

BSTRACT

Recently, the concept of “digital economy” has been used a lot. Indeed, in ma

ny developed countries, the

digital economy has significantly influenced their development factors. The digital economy plays an
important role in the life of society. So, this article is about the digital economy, which analyzes important
issues such as the nature of the digital economy, the tasks and goals of the digital economy, the experience
of foreign countries in the formation of the digital economy, and the obstacles to the development of the
digital economy in Uzbekistan.

K

EYWORDS

Digital economy models, transformation, e-government, national innovation systems, American model,
technological innovation, financial crisis, internet communication, wireless communication, free and open
internet, blockchain technologies, digital transformation, modernization, digitization policy.

I

NTRODUCTION

Today, the trend of digitalization of various
spheres of society is rapidly increasing
worldwide. This process serves as a basis for
introducing innovations and improving the

internal socio-economic situation. In this regard,
many countries encourage it in order to prevent
the positive effects of digital technologies and the
negative

consequences

of

changes

Journal

Website:

http://sciencebring.co
m/index.php/ijasr

Copyright:

Original

content from this work
may be used under the
terms of the creative
commons

attributes

4.0 licence.

Research Article

MODELS OF DIGITAL ECONOMY


Submission Date:

May 12, 2023,

Accepted Date:

May 17, 2023,

Published Date:

May 22, 2023

Crossref doi:

https://doi.org/10.37547/ijasr-03-05-09


Murotjonova Mubina Dilshod Qizi

Jizzakh Branch Of The National University Of Uzbekistan Named After Mirzo Ulugbek, Faculty Of

Psychology

”, 5230100

- Economy (By Industries And Sectors), Student Of Group 140-20, Uzbekistan


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(2022:

5.636

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(2023:

6.741

)

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(transformations) began to organize its

development. RI’s development programs have

been approved in a number of countries,
including: China, Germany, Japan, Brazil, USA,
Great Britain, Estonia, Netherlands, Ireland,
Sweden, Singapore, European Union and other
countries. The number of such countries is
increasing year by year. Each of the adopted
programs (or strategies) has its own
characteristics. But all of them are aimed at
solving national problems and primarily rely on
national innovation systems.

According to the results of recent scientific
research (2015-2019), the 10 countries with the
most developed digital economy include the USA,
Singapore, Sweden, Denmark, Switzerland, the
Netherlands, Finland, Hong Kong, Norway and
South Korea. In this list, Russia is 38th, and
Kazakhstan is 35th. By experts of the Shanghai
Academy of Social Sciences According to the
annual published report of scientific research
conducted in this regard, the USA, Singapore,
China, Great Britain, Finland, South Korea, Japan,
Netherlands, Australia and Germany are listed in
the list of 10 competitive numerically developed
countries of the world. They analyzed the main
indicators of progress from the point of view of
transformation and economic information. This
made it possible to identify a number of models of
the digital economy. The American model is one
of the first to develop ICT. Founded in 1924, IBM
is one of the recognized leaders in this field. The
main development and concentration of high-
tech companies in America

The region (in the ICT sector) is considered
Silicon Valley, and it began to develop in the
1960s. Private business has been active in this
field since the second half of the 1960s with the
support of state structures and state bodies. ICT
industry at that time. Modern big companies such
as Intel (1968), Microsoft (1975), Apple (1976),
Oracle (1977) appeared. In 1980, Stevenson-

Widler's “Technological Innovation” concept was

accepted. He demanded that every federal
laboratory establish an office to identify
innovative technologies for commercialization
and then transfer them to the private sector. Also,

the “Bey

-

Dole” cone, which is considered one of

the most effective measures for the development
of innovations, was adopted. This law allowed
universities to receive funding based on the
results of their research. In addition, innovation
various programs have appeared to encourage,
these are: Small Business Innovation Research,
Small Business Investment Company - reformed,
Small

Business

Technology

Transfer,

Manufacturing Extension Partnership. Tax
incentives were introduced for scientific-
research and engineering developments. Thanks
to grants, many new joint research enterprises
and high-tech centers was established. After the
1990s, the US economy became the world leader
laughed. Active support and development of the

country’s IT industry continued to push. The

result is new successful companies

appeared: Amazon.com (1994), Google (1996),
Facebook (2004), Uber (2009). At the same time,
there was a tendency to slow down the
development of traditional networks. If in 1997


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17% of GDP was formed by the manufacturing
industry, in 2013 it was 12%. As a result of the
financial crisis, the instability of the IT industry,
as well as the decrease in the competitiveness of
US products in the world markets, the initiative to
introduce achievements in the field of ICT to other
areas of activity was launched in America at that
time supported by the presidents, these include:
simplifying

the

regulation

of

Internet

communication, the allocation of radio
frequencies

for

wireless

broadband

communication, and the transfer of public

services to the “e

-

government” format. The

President’s Advisory Council on Science and

Technology (PCASTI), which produces reports
and policy recommendations on science,
technology,

and

innovation

for

the

administration, became more active. In addition,

the “Revitalize American manufacturing and
innovation act of 2013” will restore the American

manufacturing industry and innovation recovery,
as well as the

national program “Manufacturing

USA”. First of all, it was related to the introduction
of ICT “National network for manufacturing
innovation” (NNMI

- national network of

innovations in the field of manufacturing
technologies) is included in the program. Its main
goal is to develop and commercialize industrial
technologies through cooperation between
industrial companies, universities and federal
government agencies is to create a network of
research institutes. It is planned to allocate about
1 billion dollars from the federal budget to finance
the program until 2022.

In 2014, the national program for reforming the
system of training specialists in the fields of
science,

engineering,

technology

and

mathematics (STEM) was launched. The program
is planned to be implemented by the National
Science Foundation (higher and graduate
education), the US Department of Education
(school education), and the Smithsonian
Institution (other forms of education). The level
of penetration of the Internet in the USA is very
high, almost 88% of the population are
considered its users. But according to
international calculations, the United States is no
longer considered a leader in this field.

According to the 2017 Internet Development
Index of the International Telecommunication
Union (ITU), the country ranked 16th (China is
80th). Accepted in the country state programs are
not actively implemented. In 2012, the National
Institute for Innovative Additive Manufacturing
(Youngstown, Ohio) opened as the first project. In
2014, with the help of the US Department of
Energy and the US Department of Defense, digital
design and processing, integrated photonics, and
the development of smart devices. Decisions were
made to create several more institutes
specializing in the innovation of ash. In 2016, the
network consisted of nine institutes and more it
was planned to open six. There is also digital
inequality, with 39% of the population in rural
areas not having access to the Internet.

In 2016, 10% of the country’s population or 34

million people did not have access to the Internet
at high quality level. Outside of that, US internet is
the slowest and most expensive. The main


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(2023:

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obstacles to the digitization of the United States
are problems related to structural imbalances,
namely the federal budget acidity and the desire
not to increase the tax burden are considered.
Therefore, the state's ability to finance innovative
programs is somewhat limited. Also, its
competition with China in the field of ICT is
intensifying. The USA is the second largest
exporter of computers, telephones, radios, and
communication equipment after China. In
addition, China is trying to overtake US exports of
airplanes and automobiles as the third-largest
semiconductor manufacturer. In 2016, the

“Digital Economy Agenda”

in the United States

was announced. According to the document, the
growth of the American economy and
competitiveness depends entirely on the
development of the digital economy. Therefore, it
is proposed to encourage the spread of the
Internet and to reveal its role as a global platform
for communication, trade and innovation. Four
directions are priority: free and open internet;
trust and security on the internet; access and
opportunities; innovation and new technologies
are defined as directions.

The goal of the program is to help and support US
business, business-to-business digital policy
issues and successful solutions to challenges in
foreign digital markets, as well as to increase
product exports through global e-commerce
channels. The foreign and domestic policy of the
current president of the United States
significantly changed. His strict protectionist
policy to complications in relations with trading
partners, especially China. The anti-dumping

investigation conducted in this regard is large can
be effective. In such conditions, within the
country. The development of the digital economy
is taking its next step, and at the same time, the
economic wars in the global digital space are
intensifying. These and other changes indicate
that it will be difficult for the United States to
maintain its leadership position in the ICT sector.

European model of digital economy development

formation began in 2010, and the “Digital Agenda
for Europe” was adopted in the European Union.

Its objectives are to promote economic growth in
Europe, to help people and citizens, and to
maximize the benefits of digital technologies,
sustainable economic and social benefits (by
creating a common digital market based on high-
speed and ultra-fast internet and interoperable
applicat

ions). “Digital Agenda”, “Europe 2020”

strategy is seven leaders in this was the first of his
initiatives. Future plans are adjusted.

In 2015, the “Digital Single Market Strategy for

Europe” was adopted. Its target is the US, Japan in

the Internet economy and progressed from South
Korea. To achieve this, it was necessary to expand
access to digital goods and services, to create the
best conditions for the availability of digital
networks and services, and to offer a high level of
digitization of the economy.

In 2016, the European Commission adopted an
investment plan aimed at removing digital
barriers across the EU. Digital Single Market
(funding amount 50 billion euros), including five
main directions:


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(2023:

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- digital public-private partnerships (PPP) - is the
most expensive, and for its implementation 22
billion euros will be allocated. The main task is to
encourage the research of social, economic and
technological networks;

- to help all 28 EU member countries to provide
public services via the Internet. In this direction,
20 e-government initiatives were launched. E-
procurement is expected to be completely
successful in 2020;

- to provide an opportunity to exchange
information regardless of the manufacturer,
operating system or technology of the connected
devices. For this, it is necessary to accelerate the
development of standards, which are a strategic
element of the European industrial policy
covering various fields (health care, transport and
smart cities, 5G, IoT, cloud computing, cyber
security and information technologies);

- creation of the European cloud infrastructure
for data storage (European Open Science Cloud -
EOSC), which cost 6.7 billion euros. 1.7 million
from the platform. 70 million in the field of
European researchers, science and technology
experts use;

- 5.5 billion euros are allocated for the
development of existing national and regional
digital innovation hubs and the creation of new
ones. The purpose of their creation is to enable
every field to use knowledge and testing
equipment with the help of the latest digital
technologies.

The EU is working to create a Digital and
Innovation Policy, a Digital Single Market and an
Innovation Union. Strategies and programs
within existing European structures and
organizations in progress. The main tool for
creating the Innovation Union (another initiative

of the “Europe 2020” program) is the Horizon

2020 program, which was launched in 2014, and
in this program planned to spend 500 million
euros on the construction of innovation hubs.
Digital innovation and new business models are
considered engines of change (taking into account
jobs and trade in the European Union). According
to the digital single market strategy, 38 different
economic initiatives were put forward, 23 of
which took the form of draft laws. This includes:
phasing out roaming for mobile communications
within the EU, harmonizing frequencies for the
development of 5G networks and new online
services, and creating free Wi-Fi zones in different
EU regions. The EU is one of the largest and most
important regions in the global digital space.
Experts say that the use of ICT in Europe is
unevenly distributed among different countries,
companies and individuals. New ICT adoption is
limited due to increased concerns about digital
security and privacy. Technology expertise
(including the use of blockchain) depends on the
results of the fight against technical difficulties
and the elimination of technical problems. The
implementation of approved digitization plans is
affected by EU system problems. Conflicts
between individual countries and the European
Union are also having an impact. Estonia became
the first country to announce the launch of a
national cryptocurrency on the agenda. However,


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this initiative caused sharp criticism from the
European Central Bank. In Europe, the traditional
fight against monopoly is not going well. Because
of the proposal to introduce a digital tax to cyber
corporations not all countries are cheering.
Creating a single digital market in Europe in the
coming years not planned. Eliminating national
markets and creating a common European
market is expected to create new jobs and
additional

economic

growth.

Digital

transformation is considered to have a beneficial
effect on the economy. Brussels estimates that
investments in the digital single market could
boost the economy by 110 billion euros.

Great Britain, as a country with a high share of the
trade and financial sector in the economy, was
significantly affected by the global crisis of 2008.
Thanks to it, the attention in Europe to the
development of the ICT industry has increased
dramatically. Great Britain, according to experts,
is considered one of the most innovative and
entrepreneurial societies in the world (the
presence of world-class higher education
institutions, the development of venture capital
markets, a modern regulatory and legal
framework, etc.) considered the spread of new
technologies as the most important direction of
development.

In 2010, Great Britain adopted the Digital
Economy Act 2010 (DEA) amending the
Communications Act and a number of other legal
and regulatory documents. The innovation
system was modernized and, most importantly,
rational relations were established between all
participants of the innovation process and the

state. Government bodies have become
independent customers of research. Since 2011, a
Catapult system (InnovateUK - state innovation
agency) for the implementation of projects
selected in competitions by organizations, they
are commercial financing with grants from state
funds based on the combination and supports
research and development) was established. In
2013, 10 such centers were created in the
country, including Digital and Future Cities,
Transport Systems and Energy Systems. The state
supports them through TechUK (an association of
more than 850 AI, telecommunications and
electronics companies, covering half of the
sector's employees) and other competent
organizations. In 2017, a new law on digital
economy was adopted. It addresses issues related
to electronic communications infrastructure and
services, as well as updated terms and forms of
copyright infringement.

Digitization of the service sector has become the

main direction of the country’s development. E

-

commerce in the UK is better than any other
country in the world

developed. The degree of digitization of the
financial sector is also considered a top UK
financial technology center. The use of social
networks is also widespread in the country. The
British were the first to start using smartphones
and mobile internet, and they are far ahead of
others spend online, use phones to listen to music,
and spend more time on social networks than
Europeans. Digitization is also developing in
other fields, including education (RefMe,
eSchools) and health care (Network Locum).


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Successful British IT companies are relatively
unknown. For example, ARM Holdings, which
produces microchips for 95% of all smartphones
in the world market. Tomb Raider a Grand Theft
Auto competes with world leaders in real estate,
Zoopla Property Group and Rightmove. In 2015,
the results of the first large-scale digital
transformation program in the construction
sector were summarized. National experts
believe that building information modeling
technologies (BIM - Building Information
Modeling)

are

currently

changing

the

construction industry. They are confident that full
computerization of construction in Great Britain
will become the norm, and hope that this sector of
the country will become a world leader, and that
British designers, contractors and product
manufacturers will be recognized at the global
level. This is expected to increase the volume of
work and lead to the creation of new job
opportunities and the opening of new
opportunities.

Another priority area for digitization in Great
Britain is the development of rail transport. Since
2012, the largest infrastructure project in Europe
- Crossrail - has been implemented in the country.
It is a world-class railway connecting west and
east London, passing between existing
underground lines, sewerage and electricity

systems and buildings up to 40m deep. Crossrail’s

future passenger traffic is estimated at 200
million people per year, which is 1.5 million per
hour. person uses. Crossrail will bring 42 billion
to the UK economy over 60 years. brings pounds
sterling. Economists estimate that every pound

spent on road construction generates a profit of
2.6 pounds. Crossrail is currently nearing
completion. In November 2017, in connection
with the end of five-year funding periods for the
first centers of the Catapult system, their work
was analyzed. It found that around £1.25 billion
has been channeled to the centers, of which
around £745 million has come from the private
sector, but most of that is dependent on
government

funding.

Management

and

organizational strategies of most centers were
analyzed and 38 types of improvement
recommendations were made. Three centers -
digital, future cities and transport systems plans -
were found to be in need of improvement.

In 2017, a digital strategy was launched in the UK.
The

document aims to develop the country’s

“leading digital economy” in the seven includes

direction, including: building dune-level digital
infrastructure; providing access to necessary
digital skills for all; creating the best conditions in
the world for starting and developing a digital
business; helping businesses go digital in the UK;

creating the world’s safest place to live and work

online; maintain a global leadership role in
serving its citizens on the Internet; expanding the
use of information in the economy and increasing
public confidence in its use. The strategy includes,
in particular, the creation of five international
technology centers designed to maintain the
global dominance of British companies. The
British government plans to provide free
education for people who do not have digital
skills. Beyond that, Google, Lloyds


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Private sector organizations such as Banking
Group, Barclays participate in the training of
adults and children. The British government
plans to invest 17.3 million pounds in university-
based scientific research in the fields of robotics
and artificial intelligence. The use of artificial
intelligence will add 654 billion pounds to the
British economy in 2035. it is expected that it can
bring.

Internet appeared in Germany in 1983. But, as in
other European countries, it began to pay more
attention to ICT development in the early 2000s.
Decisions in this field are based on the specific
features of the internal structure of the economy
and are based on the national innovation system.
In Germany, the share of industry in GDP is high
compared to many other developed countries,
23%, and the deindustrialization of the economy
is low. Country general engineering (especially
mechanical

engineering

and

automotive

engineering), it is also considered a leader in the
field of transport and logistics. Although these are

“hidden champions” in cup scores, there are also

well-known large companies.

Historically, Germany has formed the most
developed and influential scientific and
innovation "ecosystems" in the world. There are
nearly 1,000 scientific research organizations of
various forms and statuses in the country. Eight
large science academies financed from state
budgets are united in the "umbrella" structure -
the Union of German Academies. Apart from this,
there are a number of organizations that have the
influence of the National Academy of Sciences.
This status was given to the oldest German

Academy of Natural Sciences in Europe

“Leopoldina” (founded in 1652), as well as the

National Academy of Science and Technology. of
research organizations in Germany. Most of them
are united in four umbrella structures named
after famous German scientists: M. Planck Society
for Scientific Research, Fraunhofer Society,
Helmholtz Association and Leibniz Association
for Research Institutes (WGL). Incorporating
dozens of research institutes, the societies have
extensive research programs and extensive
budgets drawn from a variety of sources,
including federal and state funds. The national
feature of the German model of development of
science and innovation (including training and
other fields) is the consistent implementation of
the idea and principles of cooperative federalism:
the absence of a strict hierarchy among
participants, as well as the absence of
responsibility, authority and financial division
between the level of the Federation and the level
of the state. The Federal Ministry of Science and
Technology plays a key role in the formation and
implementation of the state scientific policy.
Other federal ministries also participate in the
implementation of some directions of the state
scientific policy. At the land level, the scientific
policy of the state is the land governments and
their respective ministries is formed and
implemented by The Standing Joint Scientific
Conference (GWK) serves as a scientific policy
coordinator between the federal and state levels.
In addition, the German Science Council (WP)
advises federal and state governments on the
management of science and higher education.


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State decisions in the field are supported by
special advisory structures operating under the
auspices of the federal parliament and the
government, as well as their counterparts at the
local level. The most important of these is the
Permanent Expert Commission on Research and
Innovation (EBI), which was established by the
federal government in 2006.

Specialists of the authorities, they emphasize the
ability to develop effective structural models of
large-

scale projects, the ability to “translate” new

ideas, images of the desired future and conceptual
approaches into the language of specific tasks for
science, education and industry. The country has
chosen the goal of avoiding the risks associated
with its previous development. One way to solve
this complex problem is to systematically
integrate evaluation procedures into strategic
planning and project management mechanisms.
German science policy seeks to make effective use
of the expertise of social sciences and humanities
to find answers to the main problems of our time,
including post-crisis economic development and
digital evolution.

The legal and instrumental basis of the German
development policy is formed by a set of complex
documents, including federal government
strategies, various action plans (initiatives) of
federal ministries, as well as agreements (pacts)
and joint initiatives of the federal government
and state governments. At the same time,
Germany denies the need to harmonize the
relevant legislative initiatives of the EU member
states. All these tools and institutions were used
in the formation and implementation of state

policy in the field of modern ICT development of
the country. The main document was the high-
tech strategy for Germany (Hightech Strategie
Innovationen fur Deutschland - HTS), adopted by
the federal government in 2006 and revised in
2010. 2013 in the coalition agreement agreed by
XDS/XSS and SDPG principles of mutual
cooperation

between

state

agencies,

entrepreneurs, trade unions, science and society

were clarified. The “Digital Order 201

4-

2017”

fields were covered in detail, and a part of it was

the “Industry 4.0” initiative.

The concept of Industry 4.0 was put forward in
2011 by representatives of the country's
scientific community (Acatech and artificial
intelligence research center) and BMBF. It is
supported by the leading German business
associations (BITCOM - ICT, VDMA - mechanical
engineering and ZVEI - electronics) and the
Fraunhofer Society. The main goal of this idea is

to create “intelligent manufacturing” by

connecting cyber physical systems (CPS - cyber
physical systems) with factory processes,
machines and warehouses to the global industrial
network - the Internet of things and services.
Industry 4.0

includes

areas

such

as:

standardization and creation of a suitable
(reference) architecture of records; management
of complex solutions; global broadband
infrastructure for industry; security; organization
of menat; education and new competencies;
normative-legal base; efficient use of resources. It
aims to ensure the country's leadership in the
world manufacturing market in the areas of


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processing industry, industrial research and
development.

In 2014, the federal government was renewed for
Germany. adopted a technology strategy (HTSII).
This document is of great importance to increase
the transparency of all procedures related to the
development and implementation of the strategy,
to increase the public participation in the
evaluation of the obtained results and intellectual
crowdfunding (including through modern
Internet technologies). Today, almost 86% of the
country's population is on the Internet has access.
Germany was the first in the world to digitize its
libraries within the framework of the national

project “Global info” (from 1998 to 2004), which
is a part of the “Information as raw material for
innovation” program. Germany is one of the

leaders in the market of embedded systems and
has a decent position in the ranking of security
and business software, issues of system solutions
and know-how in embedded systems and

semantic technologies. Germany’s embedded

systems market ranks third in the world after the
USA and Japan and generates 20 billion euros per
year. According to forecasts, it will reach 40
billion by 2020. from euro to copper. But the
annual turnover of the software sector is 4 billion
- 15 billion. produces euros. Many strategies,
programs and projects are being implemented in
the country. By 2015, with the help of CPS, a
number of model factories were established and
strong research associations, such as the

innovation cluster “Smart Technical Systems East

Westphalia-

Lippe” (OWL) appeared. 40%

German company already use Industry 4.0

technologies and 23% plan to implement them in
the next few years. The share of digital
technologies is currently 22% in industry,
including 19% in mechanical and automotive
engineering, 26% in electronics and electrical
engineering, and 27% in the IT industry.

In 2015, the federal ministries created one of
Germany's largest network platforms, the
platform Industry 4.0, whose task is to develop
existing new projects and their subsequent is to
dissolve the dispersion. Along with the traditional
blocks (architecture, norms and standards,
ITTKI), special attention is paid to the security of
network systems, legal issues, education and
training, as well as cooperation between
representatives of government, business, science
and society.

The German governm

ent’s efforts to promote the

spread of digital technologies have received
international recognition: the United States and
Great Britain are trying to use Germany's
experience in this field. Germany is developing
cooperation with other countries to promote new
ICT. For example, the Industry 4.0 (Industrie 4.0)
platform is the Industrial Internet Consortium of
the United States (founded in 2014), the French
Alliance of Future Industry (Alliance Industrie du
Futur, 2015) and the Japanese Robot Revolution
Initiative (The Robot Revolution Initiative, 2015)
is under investigation. In addition, Germany has
signed a Memorandum of Understanding and a
joint action plan with China, and will hold regular
meetings with the EU and G20 countries.
According to the international evaluation of the
level of digitization, Germany ranks 12th in the


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03

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05

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55-68

SJIF

I

MPACT

FACTOR

(2021:

5.478

)

(2022:

5.636

)

(2023:

6.741

)

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Internet Development Index (ITU), lagging
behind the leaders. Whereas, for example, Great
Britain is the fifth leading country. Experts cite
factors that discourage the introduction of
Industry 4.0 technologies in Germany: sufficient
level of suspicion regarding the security of digital
data; implementation and use of uniform
standards; the need for large investments; lack of
skilled personnel who understand strategic
development; lack of customer knowledge; lack of
qualified personnel in coronas; Failure to
understand the socio-economic benefits of not
developing a business model.

The problems are in the level of digitization
between the Eastern and Western regions, the
digital inequality between different generations
of the population, as well as the difference
between the local (native) population and the
immigrants (migrants), and small and large
businesses are not sufficiently involved in the
process

of

digital

transformation.

The

implementation of the "Industry 4.0" project is
recognized as an important measure of
consolidation in the German technological
manufacturing industry, especially in the field of
production tools. The implementation of this
concept, six sectors of the German economy
(engineering; automotive and components;
electrical engineering; chemistry; IT; agriculture
and forestry) will be able to receive an additional
78 billion euros by 2025.

The implementation of these measures will make
Germany the world's leading supplier of cyber-
physical production systems. By 2020, the share
of digital technologies in production processes in

Germany is expected to increase by an average of
3.8 times, to 83%. It is doubtful that any country
in the world will not be able to achieve prosperity.
Modern digitization processes are directly related
to globalization. But with the spread of the digital
economy, the level of globalization is increasing.
There are common digitization challenges for all
countries: data transparency, uniform standards,
network security, and personal data protection.
In order to solve them, it is necessary not only to
consider competition as a mechanism of
development, but also to mention the need for
cooperation.

The formation of the digital economy opens up
new opportunities and directions for integration.
The attempts of the EU and EOIX to use the
synergistic effect of the associations to achieve
great success in the digital transformation are
particularly interesting. China was a significant
laggard in ICT development relatively recently.
The change in this situation began with the launch
of two main state projects - Plan 863 (approved

on March 3, 1986) and “Fakel” (in 1998). The first

project reaches high technologies in seven key
areas, including ICT, in the long term directed to
receive. Special attention was paid to the training
of qualified personnel, including the training of
the best students abroad and the attraction of
foreign specialists. The second project was a set
of legislative documents and initiatives aimed at
the rapid development of the new high-tech
industry. In China, the world's best achievements
in ICT have actively cloned; Almost every means
was used to bring as much foreign advanced
technology as possible.


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International Journal of Advance Scientific Research
(ISSN

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VOLUME

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05

Pages:

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SJIF

I

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(2021:

5.478

)

(2022:

5.636

)

(2023:

6.741

)

OCLC

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China’s practice of technology tr

ansfer has been

called “innovative mercantilism”. This represents
the pattern of “import

-assimilation-

innovation”

rather than the traditional “import

-

production”.

China’s uncompromising adherence to the
formula

“foreign

investment

-

Chinese

exploitation -

Chinese ownership” ensured the

openness of the market for foreign companies.
Implementation of a step-by-step approach to
state support programs (with constant
adjustments taking into account external and
internal impact factors) and strict monitoring of
the fulfillment of established obligations was
carried out. High business spending on ITIs
encouraged.

In 2010, the country was ready to take the next
step, that is, to provide its own independent high-
tech national industry. The relevant directorate of
the State Council of the People's Republic of China
on scientific and technological development of
the country for 2006-2020 and the 11th five-year
plan were adopted. In the following years,
attention was paid to the development of the ICT
sector. In the 12th five-year plan (2011-2015),
the "new generation of telecommunications
equipment" sector, aimed at fundamentally
changing the composition of the national
economy, was included in the list of priorities. In
China, the Internet has been recognized as a key
i

nfrastructure for the development of the “new

economy” with great socio

-economic benefits.

It is impossible not to recognize the huge
achievements in ICT development in China, which
started from scratch and were achieved in a very
short time. Currently, the share of the main

networks of the digital economy in China is 6-7%
of the GDP. In 2016, fixed broadband services
covered all cities and 95% of administrative
villages in the country. 85% of primary and
secondary schools in China are connected to the
Internet. Over the past 18 years, China's ICT
export volume has increased more than 16 times.
China is the only country that can create a
national internet today. Large companies in the
country are analogues of American giants:
Tencent - a large telecommunications company;
Baidu is a search engine; Xiaomi Tech -
manufacturer of mobile devices; Google with its
Android operating system is a completely
independent company; Weibo (similar to
Twitter); QQ and WeChat messengers; Aliplay is
huge with its payment system Internet giant
Alibaba, as well as Huawei Technology, ZTE,
NetEase, TP-Link and others. The world-famous
and leading companies are gradually leaving the

country. China owns Uzi’s EIX, Shenzhen Silicon

Factory. Apart from this, the form of ownership of
the giants of the Chinese information industry is
different: Huawei is a private company and ZTE is
a state-owned company. China, in particular,
stands out for its success in creating electronic
computing equipment for IT solutions for the
aerospace industry and medicine. But in the
country the level of digitization of different
sectors is not the same. In 2016, the share of the
digital sector in services was about 30%, in
industry - 17%, and in agriculture - 6%, insurance
(46%), production of audio and video products
(45%), financial services (40%), as well as
production of organizational and cultural
equipment (59%), equipment manufacturing


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5.478

)

(2022:

5.636

)

(2023:

6.741

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(47%), which are currently leading. Agriculture
and animal husbandry account for 6 and 4%,
respectively.

National experts note that there are still legal
documents that are not being changed in
accordance with the development of the digital
economy. The innovative system has its own
characteristics. In particular, there are many
controversial issues related to data ownership
and intellectual property protection. No law has

been developed to protect Fucaro’s personal data.

There is a numerical disparity between the
Eastern, Central and Western regions of the
country. The national data collection took place in
January 2017 in Beijing and Shanghai (typical of
China cities) internet usage is 70%, in the central
regions - 50%, in the Southwest - 40%. In
December 2016, Internet penetration in urban
areas was 69%, while in rural areas it was 33%.
The level of digital literacy of different groups of
the population varies significantly. 642 million in
December 2016. A person has digital skills those
who could not use the Internet due to lack of
information (54.5%), low literacy level (24.2%).

Experts point to the low quality of the labor force
in terms of ICT skills and literacy, and the lack of
qualified specialists. China has made great
achievements in the formation of a national
education system, and one of these achievements
is Shanghai Higher Education Institutions. At the
same time, it is necessary to increase the
financing of this sector in order to spread the high
quality of the basic structure throughout the
country. Today, China spends 4% of its GDP on it,
while the world's leading countries spend 5-7%

of their GDP. The country is striving for
independence in terms of ICT, because
information security is considered as serious as a
nuclear threat. China is working to create a secure
industry that is 100% secure against
unauthorized access. At the moment, a number of
foreign websites in China are restricted under the

“Golden shield” project. In 2015, the “Internet”

program was adopted, which aims to build an
information society by 2049 (in connection with
the 100th anniversary of the People's Republic of
China). The program contains a conceptual
document in which network plans are developed
and relevant targets are set. In addition,

according to the “Made in China

-

2025” strategy

(2015), it is planned to turn China from a global
factory into a global laboratory.

For this, it is planned to introduce the concept of
active digitalization of industry, finance and trade
and intelligent production. Activities: energy,
agriculture,

education,

healthcare,

transportation, financial services, social and
public

services,

logistics,

e-commerce,

development of the "impression economy",
intellectual property management, software,
including source development. In the period of
2015-2025, the Chinese economy plans to
increase the digitization of networks and sectors
to a level exceeding 22% (population). By 2020,
the share of the digital economy should be 35% of
GDP, and by 2030, it should be more than 50%.
Improvement of the tax system in China,
encouraging banks to lend to small and medium-
sized enterprises, and encouraging innovative
companies will continue.


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Volume 03 Issue 05-2023

68



International Journal of Advance Scientific Research
(ISSN

2750-1396)

VOLUME

03

ISSUE

05

Pages:

55-68

SJIF

I

MPACT

FACTOR

(2021:

5.478

)

(2022:

5.636

)

(2023:

6.741

)

OCLC

1368736135















































It is expected that private companies will increase
their spending on IT, and strengthen relations in
science and production within the framework of
public-private partnerships.

The comparative analysis of the created digital
economic models allows us to distinguish its
general features that are common to all national
digital economic models:

- the formation of a new fifth technological order
based on the use of information and knowledge;

- creation of a global digital information
environment;

- structural restructuring of remote employment;

- the quality of life is directly related to the level
of consumption of information resources;

- increase in information security issues.

R

EFERENCES

1.

Lane N. (1999) Advancing the digital
economy into the 21st century. Infor-
mation Systems Frontiers, vol. 1, no 3, pp.
317-320.

2.

Mesenbourg

T.L.

(2001)

MeasuringtheDigital Economy, US Bureau
of the Census, Suitland. Available at: (acc.
01/02/20). ions. Canberra: DBCDE (2009)
Australia's Digital Economy: Future Direct.

3.

Department

of

Broadband,

Communications and the Digital Economy
G20 DETF (2016) G20 Digital Economy
Development and Cooperation Initiative.

Available

at:

http://www.g20.utoronto.ca/ (accessed
Febr.1, 2020).

4.

Machlup

F.

The

Production

and

Distribution of Knowledge ni the United
States. -NJ.: Princeton, 1962. - 283 p.

References

Lane N. (1999) Advancing the digital economy into the 21st century. Infor- mation Systems Frontiers, vol. 1, no 3, pp. 317-320.

Mesenbourg T.L. (2001) MeasuringtheDigital Economy, US Bureau of the Census, Suitland. Available at: (acc. 01/02/20). ions. Canberra: DBCDE (2009) Australia's Digital Economy: Future Direct.

Department of Broadband, Communications and the Digital Economy G20 DETF (2016) G20 Digital Economy Development and Cooperation Initiative. Available at: http://www.g20.utoronto.ca/ (accessed Febr.1, 2020).

Machlup F. The Production and Distribution of Knowledge ni the United States. -NJ.: Princeton, 1962. - 283 p.

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