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THE IMPACT OF DIGITAL TRANSFORMATION ON REGIONAL ECONOMIC TRENDS IN THE CONTEXT OF AN INNOVATIVE ECONOMY

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This article examines the impact of digital transformation on regional economic trends in the context of an innovative economy. Based on a systematic literature review (SLR) of studies published in recent years, it analyzes how digital technologies (such as artificial intelligence, big data, and IoT) influence economic growth, innovation potential, and regional disparities. The results indicate that digital transformation significantly stimulates regional economic growth and innovation through positive spillover effects, yet exacerbates ecological challenges and inequalities in developing regions. The conclusion emphasizes the need for integrated policies to mitigate adverse effects and ensure sustainable development. Recommendations encompass the development of digital infrastructure and investments in green innovations.

AUTHORS

A.Rajabov

Ma’mun Universiteti

Tags

# economic growth# innovative economy# инновационный потенциал# экономический рост# digital transformation# raqamli transformatsiya# innovatsion iqtisodiyot# barqaror rivojlanish.# innovatsion salohiyat# iqtisodiy oʻsish# устойчивое развитие.# regional disparities# ekologik taʼsir# mintaqaviy nomutanosibliklar# инновационная экономика# цифровая трансформация# экологическое влияние# региональные диспропорции# regional economic trends# innovation capacity# ecological impact# sustainable development.

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References

An, Q., et al. (2024) ‘The impact of the digital economy on sustainable development: Evidence China’, Frontiers in https://doi.org/10.3389/fenvs.2024.1341471

Bocean, C.G. & Vărzaru, A.A. (2023) ‘EU countries’ digital transformation, economic performance, and sustainability analysis’, Humanitie

Chen, Z. & Xing, R. (2025) ‘Digital economy, green innovation and high-quality economic development’, International Review of Economics & Finance, 99, 104029. https://doi.org/10.1016/j.iref.2025.104029

Dedola, L., et al. (2023) Digitalisation and the economy. Available at: https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2809~6d29dc358d.en.pdf

Huang, W., Qu, Z. & Tan, Y. (2024) ‘Examining the impact of the digital economy on regional economic growth in China: A study of mediating and spatial factors’, SSRN. https://dx.doi.org/10.2139/ssrn.5049086

Javaid, M., et al. (2024) ‘Digital economy to improve the culture of industry 4.0: A study on features, implementation and challenges’, Green Technologies and Sustainability, 2(2), 100083. https://doi.org/10.1016/j.grets.2024.100083

Jin, L., Song, Y. & Pan, C. (2025) ‘Does the digital transformation of local leading enterprises drive digital economy development? Evidence from China’, SSRN. https://dx.doi.org/10.2139/ssrn.5354510

Le, T.A.T. (2025) ‘The impact of digital transformation on economic integration in ASEAN 6: Evidence from a generalized least squares (GLS) model’, Journal of Risk and Financial Management, 18(4), 189. https://doi.org/10.3390/jrfm18040189

Li, D., Cai, W. & Cai, D. (2025) ‘Digital economy, green technology innovation, and regional economic low-carbon transition’, SSRN. https://dx.doi.org/10.2139/ssrn.5394246

An, Q., et al. (2024) ‘The impact of the digital economy on sustainable development: Evidence China’, Frontiers in https://doi.org/10.3389/fenvs.2024.1341471

Bocean, C.G. & Vărzaru, A.A. (2023) ‘EU countries’ digital transformation, economic performance, and sustainability analysis’, Humanitie

Chen, Z. & Xing, R. (2025) ‘Digital economy, green innovation and high-quality economic development’, International Review of Economics & Finance, 99, 104029. https://doi.org/10.1016/j.iref.2025.104029

Dedola, L., et al. (2023) Digitalisation and the economy. Available at: https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2809~6d29dc358d.en.pdf

Huang, W., Qu, Z. & Tan, Y. (2024) ‘Examining the impact of the digital economy on regional economic growth in China: A study of mediating and spatial factors’, SSRN. https://dx.doi.org/10.2139/ssrn.5049086

Javaid, M., et al. (2024) ‘Digital economy to improve the culture of industry 4.0: A study on features, implementation and challenges’, Green Technologies and Sustainability, 2(2), 100083. https://doi.org/10.1016/j.grets.2024.100083

Jin, L., Song, Y. & Pan, C. (2025) ‘Does the digital transformation of local leading enterprises drive digital economy development? Evidence from China’, SSRN. https://dx.doi.org/10.2139/ssrn.5354510

Le, T.A.T. (2025) ‘The impact of digital transformation on economic integration in ASEAN 6: Evidence from a generalized least squares (GLS) model’, Journal of Risk and Financial Management, 18(4), 189. https://doi.org/10.3390/jrfm18040189

Li, D., Cai, W. & Cai, D. (2025) ‘Digital economy, green technology innovation, and regional economic low-carbon transition’, SSRN. https://dx.doi.org/10.2139/ssrn.5394246