Towards digital society management and ‘capitalism 4.0’ in contemporary Russia

This research explores alternative economic paradigms stemming from the digital society revolution and applies them to Russia's current and future state capitalism model. The paradigms encompass the digital society, global competitiveness, the Internet of Things, and social well-being. The study moves beyond traditional market versus non-market models, proposing a novel framework for development and finance within a digital society dominated by state-controlled companies. Russia's strategic state control over key sectors (energy, banking, natural resources) is accelerating, creating a new capitalism model with challenges related to efficiency, competition, and accountability. The paper investigates the impact of this new state capitalism on cross-cutting technologies and their connection to geopolitical, social, and sustainability issues. A key question explored is under what conditions technological advancements will directly link to improved human well-being and economic growth within this specific Russian capitalist context. Russia's role in supporting technological resources is acknowledged, but the need for new competencies to boost innovation is emphasized. The research hypothesis is that unlike developed market economies, the digital society's influence on Russian capitalism is complex and contradictory, requiring a flexible regulatory approach.

The paper draws upon a broad literature review encompassing the digital economy, Industry 4.0, the Fourth Industrial Revolution, and the digital society. Key works cited include those examining the digital economy's impact, social service provision in a digital society, inequalities in digital access, and the risks associated with digital data and privacy. The review also covers fundamental tenets of capitalist economic theory, including various perspectives such as free-market capitalism, speculative market capitalism, creative capitalism, customer capitalism, social business, and capitalism 4.0. This review identifies key manifestations of capitalism: foundation on private property, conditions for profit generation, deregulation, free trade, and economic openness. The research then identifies specific indicators reflecting these manifestations within the Russian context.

The research employs a quantitative analysis of the digital society's influence on designated manifestations of capitalism in Russia using correlation analysis. The analysis uses data from 2010-2020 covering indicators for private property, balanced financial results, Index of Economic Freedom, freedom of trade, and Global Competitiveness Index, alongside indicators for digital society development such as internet access, digital knowledge, information security, and daily internet usage. Regression analysis is used to model the systemic optimization of Russian capitalism through digital society management. Finally, the simplex method for multicriteria optimization is employed to determine policy implications for managing digital society development to optimize Russian capitalism. The research timeline covers the years 2010-2020, when the digital society began to emerge in Russia.

Correlation analysis revealed varying degrees of correlation between digital society indicators and manifestations of capitalism. The strongest positive correlations were found between digital knowledge and several indicators of economic health, such as the balanced financial results of companies' activities, the Index of Economic Freedom, and the Global Competitiveness Index. Regression analysis showed that specific digital society indicators (share of population without information security problems, daily internet users, and digital knowledge) strongly influenced the balanced financial results, Economic Freedom Index, and Global Competitiveness Index. The simplex method optimization determined that to maximize the growth of capitalism in Russia by 2024, digital knowledge in society should increase by 9.26%, information security should reach 100%, and the percentage of the population using the internet daily should grow by 7.13%. The model projected an aggregate growth of 71.75% in the selected manifestations of capitalism by 2024. Notably, the share of private companies and trade openness did not demonstrate a significant dependency on digital society indicators and were therefore not considered for optimization.

The findings highlight the complex and multifaceted relationship between digital society development and the evolution of capitalism in Russia. While increasing internet usage alone is insufficient for significant economic progress, strategic improvements in areas like digital literacy, cybersecurity, and e-government services are crucial. The strong positive correlation between digital knowledge and economic health indicators supports the need for investments in digital literacy programs. The findings suggest that addressing information security concerns and promoting daily internet usage can positively impact economic outcomes. The study’s methodology provides a framework for quantitatively assessing the impact of digital society management on economic development, especially pertinent for emerging economies undergoing capitalist transformation.

The research demonstrates that effectively managing the digital society's development can significantly accelerate the growth of capitalism in Russia. The quantitative analysis and optimization model presented provide valuable tools for policymakers to guide strategic interventions. The findings highlight the unique characteristics of Russia's capitalist model and the importance of considering the interplay of technological advancements, economic policies, and social factors in fostering sustainable economic growth. Future research should explore the role of digital infrastructure, e-government expansion, and the creation of high-tech businesses in further strengthening Russia’s unique model of capitalism.

The study's limitations include the reliance on specific data sets and indicators, which may not capture the full complexity of the Russian economy and digital society. The time frame (2010-2020) may not fully reflect long-term trends. Future research could expand the scope of data analysis to include a wider range of variables and a more extensive timeframe. The specific focus on Russia limits the generalizability of the findings to other countries, although the approach can be applied to similar emerging economies.