The Impact of Digital Transformation on the Investment Potential of the Russian Cities

The digital transformation of all socio-economic spheres of the country determines the inclusion of digital factors in the assessment of investment potential. The aim of this paper is to justify the need to include digital factors in assessing the investment potential and the assessment of the digital potential of St. Petersburg. The study includes statistical methods of correlation analysis, average values, comparison, and grouping. This paper defines the concept of digital potential; highlights indicators of digital technology development; presents a methodology and assessment of the digital capacity of St. Petersburg compared with other cities of federal status through 2016–2018. The author features three key components of digital potential: information and communication technology (ICT) infrastructure, digital government, and e-business. The study shows that St. Petersburg’s digital potential is sustainably growing. The research reveals that the digital capacity of St. Petersburg is improving by boosting the “e-business” component which reflects the use of ERP and CRM systems by organizations, as well as by the e-commerce. The low level of the “digital government” component has a negative effect on the integral level of digital potential despite the ongoing digitization process in the public sector services. The conclusions of the study suggest that the use of digital channels to interact with public authorities, the digitization of businesses, as well as the implementation of electronic workflow processes will improve the digital potential of St. Petersburg. Taking digital factors into account as a part of the investment potential of a city will make it possible to accurately assess its investment attractiveness. The findings of the study may be useful to scientists, rating agencies, and government officials when making investment decisions. The prospects for future research on this topic consist of expanding its base, clarifying the components of the digital potential factors, and methods for assessing the investment attractiveness of a territorial entity.

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