Modeling Sectoral Digital Development Processes

Abstract The paper proposes a conceptual approach to interpreting the stages and processes of digital development, enabling the operationalization of this concept. Based on this approach, an original comprehensive model of digital development has been developed. Its key feature is the interpretation of digital development as an innovation process, aligned with the international innovation monitoring standards defined in the Oslo Manual. Digital development is conceptualized as a “two-phase” innovation process influenced by factors from both internal and external environments. The first phase involves digital product innovations (production and market launch of new ICT goods and services), while the second phase entails digital process innovations based on the adoption of these products in various sectors, leading to the transformation of business processes. The model also accounts for systemic changes, such as the emergence of multisided digital platforms and industry-specific information systems. The proposed approach systematizes methods from various disciplines (ranging from innovation modeling to digital maturity assessment) and serves as an effective management tool at the corporate, industry, and national levels.