State and Corporate Management of Region’s Development in the Conditions of the Digital Economy

Purpose: The article is aimed at identifying new challenges for public and corporate management in the context of the digital development of the modern region, the definition of scenarios, and the optimal model of management of this development. Design/Methodology/Approach: The authors apply the methodology of correlation and scenario analysis, as well as economic modeling. Certain calculations are made to identify the correlation between the indicators of public and corporate management performance in the region—the balanced financial result of enterprises and the balance of the regional budget—and the indicators of digital development of the region—the share of enterprises using the Internet, the number of personal computers per 100 employees, the share of households with computers and the Internet, as well as the share of innovation-active organizations. Findings: In the course of the research it was shown that the digital development of the economy of the regions, which are not characterized by a distinct inclination to scientific and technical progress, is based on the measures of state financial support of the digital modernization of the economic system of the region and on the measures of corporate financing of own digital modernization. Originality/Value: It is justified that, although financial management measures may ensure the rapid growth of the digital economy, which is the case in the regions of the North Caucasus Federal District of the Russian Federation, the “side effect” is the depletion of state and corporate budgets in the region and the financial crisis (pessimistic scenario). An alternative optimistic scenario is also possible which enables to avoid the crisis and possibly achieve even greater progress in building the digital economy. For its implementation, the model of state and corporate management of digital development of the modern region has been developed in order to optimize it, based on the measures of non-financial management, which ensure greater efficiency of management due to lower consumption of resources while achieving long-term (synergy) effect.

Purpose: The authors aim is to study the factors of the region’s labour market development in the digital economy (on the example of the regions of the North Caucasus Federal District of the Russian Federation) and to develop tools for their management in order to optimize transformations. Design/Methodology/Approach: The authors use one of the most common methods of econometrics—regression analysis. To test the hypotheses, regression curves are drawn that automatically form paired linear regression models and calculate correlation coefficients. Findings: Three factors have been identified for the development of the region’s labour market in the digital economy: the increase in the level of education in the “knowledge economy”, the growth of innovative activity of entrepreneurship and the computerization of entrepreneurship. It has been revealed that, although structural transformations of the labour market are indeed taking place in the regions of the North Caucasus Federal District of the Russian Federation in 2018, they contradict the existing ideas. Originality/Value: It has been proved that in the digital economy, instead of the expected crisis of the labour market (rising unemployment and social tension), favourable conditions and new opportunities are being created to balance the market and establish social justice in it (preventing discrimination against employees in terms of age and level of education). However, in the case of market self-regulation (deregulation), the natural influence of these factors is weak. Therefore, the state management of the identified factors of the development of the regional labour market in the digital economy should be aimed at strengthening (rather than deterring, as originally assumed) their positive impact on the market—for this purpose, appropriate management tools have been proposed.

Purpose: The paper is aimed at the development of scientific and methodological support for assessing the competitiveness of the region in the digital economy, which allows achieving both the completeness of the assessment and its high accuracy and objectivity to obtain systematic and reliable results. Design/Methodology/Approach: The author’s scientific and methodological support of the assessment of the region’s competitiveness in the digital economy has been developed, which allows combining quantitative (contained in official statistics) and qualitative (obtained through a survey of the region’s population) data for the most complete assessment of the region’s competitiveness in the digital economy. The proposed scientific and methodological support for assessing the competitiveness of the region in the digital economy was tested on the example of the regions of the North Caucasus Federal District of the Russian Federation in 2018. Findings: It is justified that unlike the general competitiveness (taking into account the level of education, healthcare, living standards, and other indicators), for which the necessary statistics are available and are highly reliable, the assessment of digital competitiveness cannot be based only on statistical data (due to their scarcity and inaccuracy), and therefore, it should also take into account the values of qualitative indicators. This is achieved in the developed scientific and methodological support of assessing the competitiveness of the region in the digital economy. Originality/Value: The testing of the proposed scientific and methodological support on the example of the regions of the North Caucasus Federal District of the Russian Federation in 2018 demonstrated significant differences in the quantitative and qualitative assessments. As a result of their system accounting, the most objective, complete, accurate, and reliable results were obtained, according to which the highest level of competitiveness in the digital economy is peculiar to the Kabardino-Balkaria Republic. Interim assessment results can be used by all regions to identify their strengths and weaknesses as well as to develop and implement highly effective regional strategies for managing the competitiveness of the economy in the digital economy.

Purpose: The purpose of this study is to develop a method of indicative evaluation of the effectiveness of public management of the development of a region in the digital economy and its testing on the example of the regions of the North Caucasus Federal District of the Russian Federation. Design/Methodology/Approach: The author’s method of indicative evaluation of the efficiency of management of the region’s development in the conditions of digital economy has been developed. The indicators of efficiency of management of regional development in the conditions of digital economy are the use of digital economy possibilities for maximization of incomes and minimization of regional state budget expenses. Findings: It has been stated that, due to the digital economy, the income of state budgets of the regions of the North Caucasus Federal District of the Russian Federation in 2018 is 6.19 times higher (as compared to income without the use of digital technologies). At the same time, the potential for minimizing expenditures of their budgets has been rarely realized. The digital economy allows reducing state budget expenditures of the regions of the North Caucasus Federal District of the Russian Federation by 480.64 times. Originality/Value: The calculations showed that state management of the development of the regions of the North Caucasus Federal District of the Russian Federation in 2018 is effective (revenues exceed expenditures). However, the opportunities of the digital economy have been practically neglected. As the digital economy develops in the regions under consideration, the efficiency of government economic management should be expected to improve. It is recommended that the digital modernization of the economy of these regions should be stimulated in order to increase the efficiency of public management.

Purpose: Authors pursue the goal to define a mass-available (simple in realization) economic and mathematical method (applied on a junction of economic and mathematical sciences) and its adaptation for the solution of a problem of nonlinear optimization and its approbation on an example of the regions of the North Caucasian district of the Russian Federation. Design/Methodology/Approach: As a result of the research, the scientific and methodological support of scenario modeling of public administration of the region’s development in conditions of the digital economy by means of adaptation of analytical hierarchical procedure of Thomas L. Saaty to the solution of the formulated problem of nonlinear optimization was formed. The advantage of this method is that the use of specialized software is not required—all calculations can be automated in the mass-available program Microsoft Excel using standard formulas. The method implies modeling with the help of matrices. We have adapted the method to solve the problem of nonlinear optimization according to the choice of the scenario of state management of the region’s development in the conditions of digital economy, which resulted in the following algorithm of its practical application. Findings: Testing of the developed scientific and methodological support by the example of the regions of the North Caucasus Federal District of the Russian Federation in 2018 showed that in modern Russia, the efficiency criterion is much higher than the criterion of competitiveness. However, even though the economy of the regions of the North Caucasus Federal District of the Russian Federation becomes more digitalized in 2018, the efficiency of state management of their economy decreases (inverse regression dependence), and the accelerated digitalization scenario (scenario 3) proved to be optimal. Originality/Value: It is proved that the intuitive choice of an optimal scenario is difficult, and the developed scientific and methodological support of scenario modeling of public management of the region’s development in the conditions of digital economy has high theoretical and practical significance.

Purpose: The purpose of the study is to develop a scientific approach to the management of digital entrepreneurship in the modern region (on the example of the regions of the North Caucasus Federal District of the Russian Federation) through the prism of the ratio of state simulation and application of market mechanisms of development. Design/Methodology/Approach: To determine the impact of government incentives and market self-governance measures on digital entrepreneurship in the regions of the North Caucasus Federal District of the Russian Federation in 2018, the authors use the correlation analysis method. Those management measures that have the most pronounced positive impact (positive correlation) are preferable and will form the basis of the approach being developed. In order to demonstrate the specifics of digital entrepreneurship, the impact of regulatory market measures is determined not only on the market but also on entrepreneurship as a whole. Findings: It has been revealed that digital entrepreneurship is a new subject of the modern region’s economy and therefore requires a new approach to managing the development of entrepreneurship. The concept of state regulation traditionally implemented in the regions of the North Caucasus Federal District of the Russian Federation has demonstrated its inapplicability to digital entrepreneurship. The concept of market self-administration proved to be more preferable. At the same time, market mechanisms have shown different results. Stimulation of free competition proved to be the most effective. The growth of foreign competition and investment in fixed assets (in innovations) is also welcome. Originality/Value: On the basis of the received conclusions the scientific approach to management of development of digital business in the regions of the North Caucasian federal district of the Russian Federation in 2018 is generated.

Purpose: The aim of the work is to define a scenario for digital modernization of the economy of the regions of the North Caucasus Federal District of modern Russia, as well as to develop recommendations for the development of a regional system of science and education as a source of digital personnel and breakthrough technologies for the economy of the regions of this district to accelerate its digitalization. Design/methodology/approach: The method of factor analysis is used to study the structure of digital personnel and the logic of formation of breakthrough technologies in the regions of the North Caucasus Federal District of the Russian Federation in 2018–2019. Findings: It has been revealed that in the regions of the North Caucasus Federal District of the Russian Federation the level of the scientific and educational system development is very high—high enough for these regions to be able to actively export advanced technologies. This is the reason for the low achieved level and slow pace of digital modernization of their economy. At present (2019), the regions of the North Caucasus Federal District of the Russian Federation are implementing the tradition-oriented scenario of digital economic modernization. Insufficient preparation of society and entrepreneurship for the digitalization program launched by the state has caused protests against this program. Therefore, despite the rather high productivity of the regional system of science and education, the advanced technologies being created are not used in the region, but are exported. The regions of the North Caucasus Federal District of the Russian Federation have the potential for transition to an internally oriented scenario (most preferable). Originality/value: Promising government regulation measures have been proposed to accelerate modernization and ensure a high level of global digital competitiveness of the economy of the regions of the North Caucasus Federal District of the Russian Federation.

Purpose: The purpose of this paper is to solve the problem on the example of the regions of the North Caucasus Federal District of the Russian Federation by identifying the necessary infrastructure components, developing methods to measure infrastructure adequacy, its testing and development of recommendations for infrastructure development in these regions. Design/methodology/approach: When conducting the research, we carry out our own experiment using the expert assessment method. This allowed to qualitatively assess the level of development and sufficiency of digital economy infrastructure for the agro-industrial complex of the regions of the North Caucasian Federal District of the Russian Federation in 2018. Findings: It is shown that the agro-industrial complex of the region needs special logistical (including telecommunication), technological, personnel, financial, regulatory, and marketing infrastructure. To measure the adequacy of individual components and infrastructure as a whole, a set of parameters is proposed. Originality/value: The author’s method of measuring the digital economy infrastructure for the agro-industrial complex of the region was developed. The results of testing of this method by the example of the regions of the North Caucasus Federal District of Russia in 2019 showed that the deficit of digital infrastructure for the region’s AIC is sharper than the deficit of the general infrastructure of the digital economy. The largest deficit is observed in the regulatory and personnel infrastructure of the digital economy for the AIC. Therefore, it is recommended that special attention is paid to the development of these components in the interests of creating more favorable conditions for the digital modernization of the agro-industrial complex of the regions of the Caucasus Federal District of Russia.

Purpose: The purpose of the paper is to identify common (in the regions of Russia as a whole on the basis of improving the algorithm used) and private (in the regions of the North Caucasus Federal District on the basis of its current features) prospects for the development of e-government in the digital economy of Russia. Design/methodology/approach: With the help of the method of expert assessments, which determined the ratio of readiness, demand and the level of implementation of e-government in the regions of the North Caucasus Federal District of the Russian Federation in 2019, characteristics and promising directions for the development of e-government in the regions under study were identified. Findings: The level of development of the e-government system in the regions of the North Caucasus Federal District has been determined. The improved algorithm of electronic government system development in the region in conditions of digital economy is offered. The ratio of readiness, demand, and level of introduction of electronic government system, and also characteristics and perspective directions of development of system of electronic government in regions of the North Caucasian federal district of the Russian Federation in 2019 is defined. Originality/value: As a result of the study on the example of the regions of the North Caucasus Federal District of the Russian Federation in 2019, it is shown that the prospects for the development of e-government in the regions of Russia in the digital economy are associated with the following actions. Firstly, improvement of the algorithm of e-government system development in the region in the digital economy is possible by changing the order of its stages and including a new stage—determining the specifics of the region. Secondly, ensuring a balance of readiness, demand, and level of implementation of e-government; in the regions of the North Caucasus Federal District, it is recommended to increase the level of implementation of this system. Thirdly, ensuring security (achieved in the regions of the North Caucasus Federal District of the Russian Federation), reliability, completeness, and simplification of e-government system in the region. Finally, priority electronic conversion of the most demanded components of public administration (in the regions of the North Caucasus Federal District of the Russian Federation these are state and budget services).

Purpose: The purpose of the paper is to determine the problems of formation of digital society in the modern region and ways of their solution on the basis of labour market management in the agricultural sector on the example of the North Caucasus Federal District of the Russian Federation. Design/methodology/approach: The authors made an expert assessment aimed at identifying these indicators of the development of digital society in the agricultural sector of the regions of the North Caucasus Federal District of the Russian Federation in 2019. Using the method of regression analysis, a linear dependence of the level of informatization (digitalization) of society in the regions of the North Caucasus Federal District of the Russian Federation in 2019 on the values of selected indicators was determined. Scenario modelling of simplex method was carried out on the basis of the regression model, with the help of which target values of indicators were defined to maximize the level of informatization (digitalization) of the labour market in agrarian sector in the regions under consideration. Findings: It has been revealed that the labour market in the agricultural sector makes a significant contribution to the formation and development of digital society in modern regions, which was proved by the experience of the regions of the North Caucasus Federal District of the Russian Federation in 2019. The actual problems of formation of digital society in the labour market in the agricultural sector of the regions under consideration are connected with low level of digital competition, low demand for digital personnel and low availability of digital technologies. Originality/value: The specificity of agrarian sector of regional economy has been substantiated. Certain recommendations were suggested for state and corporate management of the development of digital society in the labour market in the agricultural sector in the regions of the North Caucasus Federal District of the Russian Federation in 2019 to ensure food security.

Purpose: The purpose of the study is to investigate the process of evolution of higher education and science in the conditions of digitalization, to identify the problems arising in this process and to determine the prospects for their solution. Design/methodology/approach: The authors rely on the methodology of institutional economic theory, which makes it possible to consider the process of institutionalization of evolutionary (modernization) practices implemented in the higher education system under conditions of digitization. The authors are also guided by a systematic approach to scientific research. According to this approach, the authors consider the system of higher education and science as a component element of the economic system of the region and as a link in the value chain of digital product. The research is based on the modern experience of the regions of the North Caucasus Federal District of the Russian Federation (2019). Findings: It is shown that in modern Russia the process of evolution of higher education system and science in the conditions of digitalization faces serious external barriers—“institutional traps”. These are caused by the directive course of the digitalization of the Russian economy, which was initiated by the state and was poorly supported by entrepreneurship and society. Originality/value: It has been substantiated that the prospects for overcoming the “institutional traps” of the evolution of higher education and science in the conditions of digitalization in Russia are connected with the harmonization of the evolution of higher education and science with the development of the labour market in the region and regional entrepreneurship.

Purpose: The purpose of the study is to systematically review the advantages and risks of production organization on the basis of the Internet of things, as well as related barriers, and determine the feasibility of transition to this form of organization of production taking into account the interests of all stakeholders. Design/methodology/approach: The authors operate with the fundamental principles of the systemic approach (theoretical base of research) and take into account the positions of all interested parties. The game approach serves as the methodological basis of the research. The authors use the methodology of game theory to compare the advantages, risks and risks (probability of application) of the three available options for organizing production on the basis of the Internet of things. Findings: It was found that the advantages of production organization based on the Internet of things for the enterprise of Industry 4.0 are associated with productivity growth, achieving “economies of scale”, reducing the share of faults and risks—with disruptions to machinery (production stoppage) due to insufficient provision of cyber security. Employees benefit from an increase in the intellectual component of work (routine processes are performed by machines), while the risk is associated with unemployment—the need for retraining or professional development. Advantages for consumers are associated with increased environmental efficiency of production by increasing the availability and quality of products, and the risk is associated with the energy crisis due to multiple increases in energy consumption by businesses. A comparative analysis of three available options for organizing production on the basis of the Internet of things has been carried out: partial automation of production, full automation of individual production processes and full automation of production on the example of modern Russia. Originality/value: A systematic view of production on the basis of the Internet of things has shown that in the current organization it is characterized by low efficiency, and therefore, it is inexpedient in all available options. This problem can be solved by the author’s recommendations to improve the organization of production based on the Internet of things for all available scenarios. The proposed recommendations reduce risks and increase the likelihood of benefiting from them, thus increasing efficiency.

Purpose: The purpose of this work is to justify the prospects for improving the practice of management decision-making in modern business based on artificial intelligence on the example of the regions of the North Caucasus Federal District of the Russian Federation. Design/methodology/approach: In order to determine the context in which the modernization of entrepreneurship in the regions of the North Caucasus Federal District of the Russian Federation is carried out in 2018 and, in particular, the practice of management decision-making, a review and analysis of statistical data on the digitalization of business in the regions under study is conducted. Findings: It has been substantiated that the development of the digital economy in the region is cyclical: the new infrastructure available for business opens up opportunities for its modernization, promotes its flexibility and efficiency, thus increasing the level of digitalization in the region and creating prerequisites for the formation of new infrastructure. The example of artificial intelligence shows that its implementation in the practice of corporate decision-making needs infrastructure support. In turn, it increases the level of business automation, stimulating the government to create new infrastructure, as well as forming the experience of using artificial intelligence in decision-making and promoting its institutionalization. Originality/value: It has been proved that there is a close two-way relationship between state and corporate governance in the digital economy, causing their interdependence and ability to generate synergy effects in the form of accelerated construction and development of the digital economy. This connection is most distinct and strong at the level of the region, which emphasizes the special perspective of studying the regional aspect of digital economy. The analysis of modern experience of business digitalization in the regions of the North Caucasus Federal District of the Russian Federation in 2019 showed that some digital technologies have been introduced into the practice of decision-making, but the system automation of this practice has not yet been achieved—it will be facilitated by the proposed logical scheme.

Purpose: The work is aimed at developing a scientific concept of corporate database management on the basis of cloud, quantum, blockchain technologies and big data processing technologies on the principles of efficiency and security in the context of the digital economy of the region on the example of the North Caucasus Federal District of the Russian Federation. Design/method/approach: The authors consider passports of the federal projects “Information security” and “Digital technologies” of the national program “Digital economy of the Russian Federation” from 07.11.2019. The authors analyze the statistics of financial support of digitalization of the Russian economy from 2018 to 2024. They determine the current level of development and future prospects of digital technologies in the world economy on the basis of materials of the National Research University “Higher School of Economics”. Findings: The conceptual model of corporate database management on the basis of cloud, quantum, blockchain technologies and big data processing technologies on the principles of efficiency and security was developed. Scenario analysis of corporate database management on the principles of efficiency and security in the regions of the North Caucasus Federal District of the Russian Federation with the application of game theory methodology was conducted. Originality/value: It has been substantiated that the management of corporate databases based on cloud, quantum, blockchain and big data technologies to meet the criteria of efficiency and security should be organized in a systematic manner and be based on the capabilities of the region. This forms a fundamentally new scientific concept of the organization of the process under study, which reflects the view on it not from the standpoint of an isolated enterprise, but from the standpoint of the region’s enterprises. Owing to this, security is provided with the support of the state, the risks are distributed among the enterprises of the region and full-scale financing allows maximizing the advantages. Circulation of regional enterprises allows establishing electronic document circulation and formation of an integral network of corporate databases in the region, thus further increasing management efficiency.

Purpose: The purpose of the work is to identify promising growth points and offer scientific and methodological recommendations for measuring and managing the innovative development of entrepreneurship in the agro-industrial complex (AIC) in the digital economy on the example of the regions of the North Caucasus Federal District of the Russian Federation. Design/methodology/approach: The authors conduct a statistical review of the innovative development of the agro-industrial complex in the regions of the North Caucasian Federal District of the Russian Federation in 2018, and also apply the method of regression analysis to determine the innovative activity of the agro-industrial complex of the studied regions. The share of the agro-industrial complex enterprises by the criterion of number and turnover in the structure of entrepreneurship in the regions under study was analyzed. Findings: It has been substantiated that in the conditions of digital economy, the prerequisites are created to accelerate and increase the efficiency of innovative development of APA entrepreneurship. New growth points—circularity and green innovation as well as automation and APA 4.0—are becoming available. In the regions of the North Caucasus Federal District, agribusiness enterprises are highly innovative and largely determine the overall innovative development of regional entrepreneurship. Originality/value: It has been proven that using the opportunities of the digital economy will increase the contribution of the innovative development of the AIC to the stability of the region, its food security and acceleration of its economic growth. For this purpose, a framework strategy for innovative development of the AIC entrepreneurship in the region in the digital economy has been developed.

Purpose: The purpose of the work is to study the problem of migration in the digital economy through the prism of identifying new challenges to the labour market, as well as identify opportunities and priorities to address this problem on the example of the regions of the North Caucasus Federal District of the Russian Federation in 2018. Design/methodology/approach: The impact of migration on indicators reflecting the state of the labour market and the economy as a whole in the regions of the North Caucasus Federal District of the Russian Federation in 2018 is determined. The method of regression analysis has been chosen as the methodological basis for the study, which is used to build regression maps reflecting the impact of migration on the listed indicators. Findings: It was discovered that the problem of migration is growing in the digital economy, creating new challenges for the region’s labour market. These challenges include the need to retain staff in the digital economy and to find a balance between incoming and outgoing migration flows in order to maintain labour market stability. Overcoming these challenges can be achieved on the basis of the digital economy opportunities through the development of distance learning, the formation of an electronic labour market and the use of digital means of business integration, for example, distance exchange of knowledge and information. Originality/value: It is grounded that the priorities of solving the problem of migration in the region in the conditions of digital economy consist in prevention of the own personnel outflow and attraction of external personnel of digital economy, as well as prevention of unclaimed personnel inflow into the region. Their observance is facilitated by the developed regulatory concept.

Purpose: The aim of the paper is to determine the prospects and develop a scientific concept of social adaptation to the transformation of the labour market in the region in the digital economy on the example of the North Caucasus Federal District of the Russian Federation. Design/methodology/approach: To clarify the specifics of ensuring mass digital literacy and availability of digital technologies at the regional level, a correlation analysis (calculation of determination coefficients R2) of interrelation and interdependence of indicators of labour market functioning and indicators of information society development was carried out in 2018 on the example of the regions of the North Caucasian Federal District of the Russian Federation. SWOT-analysis of social adaptation to the transformation of the labour market in the regions of the North Caucasus Federal District of the Russian Federation in the digital economy was also carried out. Findings: It is shown that social adaptation to the transformation of the labour market in the region in the digital economy is a complex process involving three areas of government regulation. The first area is mass digital literacy. The second direction is psychological support for the information society through social advertising. The third direction regards increasing access to digital technologies through infrastructure development and formation of a regional platform for digital organization of the labour market, as well as regulatory support. Originality/value: The example of the regions of the North Caucasus Federal District of the Russian Federation in 2018 shows that in modern regions educational, psychological and infrastructural barriers to the formation and entry into the digital labour market are very high, which hinders the development of this market. The developed mechanism of social adaptation to the transformation of the labour market in a region in the conditions of digital economy allows to implement the proposed directions systematically and with high efficiency.

Purpose: The study aims to review the practical experience of entrepreneurship education in the regions of the North Caucasus Federal District of the Russian Federation and to develop recommendations to stimulate demand and organize entrepreneurship education in the digital economy in the modern region. Design/methodology/approach: The share of entrepreneurship in the structure of employment of economically active population aged 15–72 years in the regions of the North Caucasus Federal District of the Russian Federation in 2018 has been determined. The paper considers the balanced financial result of entrepreneurship in the regions of the North Caucasus Federal District of the Russian Federation in 2018. The statistics on entrepreneurship education is analyzed and the sufficiency of its coverage for the successful functioning of entrepreneurship in the regions under study is determined. Findings: The considered practical experience of business training in the regions of the North Caucasus Federal District of the Russian Federation showed that at present entrepreneurship is not fully covered by this training due to low demand and shortage of supply. Insufficient skill level of entrepreneurs leads to business losses, which will be overcome by the development of entrepreneurial education. Originality/value: A model for organizing entrepreneurial learning in the digital economy in the region was developed. The model demonstrated the preference of this training on the territory of the region to ensure that entrepreneurs master all necessary theoretical and practical competencies. Some recommendations were also proposed to stimulate the demand and supply of entrepreneurial training in the conditions of digital economy in the modern region.

Purpose: The study is aimed at studying the transformation processes taking place in the labour market in the region in the conditions of digital economy, development of a new model of organization of this market taking into account new professions that have emerged in it and digital competences that are in demand in them. Design/methodology/approach: For empirical purposes, the author analyzes the structure of the labour market in the regions of the North Caucasus Federal District of the Russian Federation in 2018 from the positions of employment (satisfied supply), digitalization of business (aggregate new demand) and the number of digital workers (aggregate new supply). Oversupply and evident deficiency of digital economy personnel in the majority of regional economy branches have been revealed and the necessity of their balancing has been substantiated. Findings: The results of the research revealed a number of negative trends on the labour market in the digital economy. The example of the regions of the North Caucasus Federal District of the Russian Federation shows that nowadays there is a complication and toughening of competition, as well as growing imbalance of the labour market. In the structure of professions represented on this market, the traditional participants—non-digital specialists by industry—are complemented by digital specialists by industry and universal (cross-industry) ICT specialists. All of them compete with each other for employment opportunities, which is a complex task in the dynamic development (digitalization) of entrepreneurship. Originality/value: A new model of labour market organization in the region in the conditions of digital economy was developed and a competent approach for state regulation of this market was proposed. The author’s recommendations make it possible to balance the labour market and increase the probability of establishing a balance on it.

Purpose: The purpose of the work is to study the specifics of public management of foreign economic activity of the region in the digital economy on the example of the North Caucasus Federal District of the Russian Federation. Design/methodology/approach: In order to obtain the most accurate and reliable results in the study of the problem, a comprehensive analysis of statistical data reflecting various aspects of foreign economic activity of the regions of the North Caucasus Federal District of the Russian Federation is carried out in this research. In order to identify the specifics of these activities in the digital economy, statistical data are considered in dynamics—2011 and 2018. Findings: So, the working hypothesis is confirmed. On the basis of the experience of the regions of the North Caucasus Federal District of the Russian Federation, which has demonstrated negative trends in foreign trade, four new directions of state management of foreign economic activity of the region, arising in the conditions of digital economy, have been defined: regulation of foreign trade in technologies as one of the most valuable resources of the region in the conditions of digital economy, general control of foreign trade in goods in the interests of ensuring economic security of the region, assistance in exploiting integration opportunities for the development of the digital economy in the region, and foreign investment attraction in the development of the digital economy in the region. Originality/value: The main conclusion of this study, which has both theoretical and applied value, is to justify the need to pay greater attention to public regulation of foreign trade in the digital economy. The analyzed experience of the regions of the North Caucasus Federal District of the Russian Federation can be useful for many other regions characterized by moderate global competitiveness and reserved integration. Selected regulatory directions are universal—they are relevant for all regions in the digital economy. But depending on the specifics of the situation, different approaches for the implementation of these directions can be applied based on either stimulating or deterrent and restrictive measures.

Purpose: The aim of the paper is to define scenarios for the development of regions of the North Caucasus Federal District of the Russian Federation in the conditions of the digital economy and to set priorities for state and corporate management of this process. Design/methodology/approach: In the scenario modeling of the development of regions of the North Caucasus Federal District of the Russian Federation in the conditions of the digital economy, the method of regression analysis and the simplex method of multi-objective optimization are used in this paper. Based on the noosphere approach to the study of economic systems, the dependence of the level of employment (social sphere indicator), GRP per capita (economic sphere indicator), and the share of innovative products (innovation sphere indicator) on the level of business digitalization in the regions under consideration is determined in this paper. Findings: The results of the study showed that digitalization has a generally beneficial effect on the regions of the North Caucasus Federal District of the Russian Federation, but is accompanied by inevitable negative effects and risks. As a result of systematic analysis of the consequences of the development of the digital economy in the studied regions, it has been proved that neither a strong deterrent to digital modernization of these regions nor their accelerated revolutionary transition to industry 4.0 is appropriate. We have recommended a scenario related to rapid but evolutionary digitalization, which would allow to achieve its clear advantages but prevent the crisis impact of the shortcomings on the regional economy. Originality/value: The analysis of the experience of the regions of the North Caucasus Federal District of the Russian Federation has shown that the digital economy can moderately promote employment, as well as significantly accelerate the innovative development of regions. Nevertheless, regardless of the scenario, digitalization leads to a decline in living standards. Therefore, social and crisis management is a key priority for the state and corporate governance of the region’s development in a digital economy. Attention should also be paid to cyber-security and ensuring a balanced regional economy.

Purpose: The aim of the work is to substantiate the demand and develop a promising model of “smart” region, allowing state and corporate management of economic development based on machine vision and computation in the regions of the North Caucasus Federal District of the Russian Federation. Design/methodology/approach: To overcome the discrepancy between theory and practice and to ensure the integrity of the concept of “smart” region in their work the authors review the available statistical data on the level of development of the digital economy in the regions of the North Caucasus Federal District of the Russian Federation in 2018. Findings: The necessity and readiness (universal accessibility and active use of the Internet by business and population) of the regions of the North Caucasus Federal District of the Russian Federation in 2018 to implement the concept of “smart” region has been substantiated. The unique needs that determine the necessary specifics of the application of this concept in the regions under study—law enforcement, information, and technical support for corporate governance. Originality/value: A promising model of economic development management based on machine vision and ubiquitous computing in “smart” regions of the North Caucasus Federal District of the Russian Federation was developed. The benefits for the region’s residents are related to the improvement of living standards and quality of life, growth of social justice through more accurate and justified government support, as well as fuller satisfaction of social needs by businesses.

Purpose: The purpose of the study is to justify the prospects for balanced development of the regional labor market through digital modernization on the example of the North Caucasus Federal District of modern Russia, as well as in the development of practical-oriented scientific and methodological recommendations for this purpose. Design/methodology/approach: The study is of a programmatic and targeted nature. Thanks to this, it aims to use the opportunities of the digital economy to address the following identified in the statistical analysis of the current problems of the labor market in the regions of the North Caucasus Federal District of the Russian Federation, resulting in its imbalance. Findings: It is shown that the digital economy will allow achieving a balanced development of the regional labor market by overcoming its pressing problems. In the regions of the North-Caucasian Federal District of the Russian Federation, these are the gaps in the structure of the economically active population, mismatch between demand and supply of personnel on the labor market, including personnel of digital economy, the lack of optimality of making personnel decisions by employers due to incomplete accounting of labor supply in the region, incomplete compliance with requirements to working conditions in modern Russian entrepreneurship, and incomplete social justice on the labor market of the Russian regions. Originality/value: A promising mechanism has been developed for the balanced development of the regional labor market through digital modernization. Thanks to its practical implementation, the following advantages are achieved: overcoming the gap in the structure of the economically active population of the region, balancing the demand and supply of labor, including in the digital economy of the region, ensuring the adoption of optimal personnel decisions by enterprises of the region, improving working conditions in the region, and improving social justice in the region.

Purpose: The purpose of this work is to determine the current level of sustainability of the agro-industrial complex (AIC) development in the regions of the North Caucasus Federal District of the Russian Federation and develop a mechanism to increase it in the digital economy. Design/methodology/approach: To determine the sustainability of AIC development we will analyze statistical data: about the index of agricultural production, about the share of enterprises carrying out “green” innovations, about the share of enterprises organizing circular production in the regions of the North Caucasian Federal District of the Russian Federation in 2018. Findings: The conclusion is made that the digital economy offers enhanced opportunities for sustainable development of the region’s agricultural sector. However, its organization should apply its own schemes, rather than template schemes from other industries. The regions of the North Caucasus Federal District of the Russian Federation already pay considerable attention to environmental responsibility, introduction of “green” innovations, and circular production. This creates the prerequisites for the implementation of new initiatives based on the capabilities of digital technologies—robots and artificial intelligence. Originality/value: The developed model of sustainable development of the region’s digital agriculture based on environmental responsibility, “green” innovations and circular production allows to overcome existing barriers to the implementation of relevant practices in the regions of the North Caucasus Federal District of the Russian Federation—to reduce the labor and resource intensity of these practices and increase their controllability through automation. This will result in a significant increase in the activity of agricultural enterprises in the regions with the implementation of measures to demonstrate environmental responsibility, introduction of “green” innovations, and ensuring circularity of production. It will also ensure the growth of the production capacities of agricultural enterprises and guarantee the reproduction of food products in the regions to maintain their food security.

Purpose: The aim of the paper is to develop a promising scheme of state and corporate quality of life management in the region in the digital economy based on social programs and social responsibility on the example of the regions of the North Caucasus Federal District of the Russian Federation. Design/methodology/approach: To determine the current quality of life in the regions of the North Caucasus Federal District of the Russian Federation in 2018, the authors are analyzing these statistics. They also review statistics on the implementation of social programs by the state, reflecting the share of spending on social and cultural events in the structure of total state budget expenditures in the regions of the North Caucasus Federal District of the Russian Federation in 2018. Findings: It has been proved that the digital economy provides opportunities, and therefore, serves as a tool for public management of the quality of life in the region. The considered experience of the regions of the North Caucasus Federal District of the Russian Federation in 2018 showed that under the traditional scheme of social programs implementation they provide limited results for the quality of life. Originality/value: A structural and logical scheme of state and corporate quality of life management in the region in the digital economy based on social programs and social responsibility has been developed, which shows that the roles of state and business should be redistributed to achieve maximum efficiency. Public management of the quality of life in the region in the digital economy should not be aimed at the development of telecommunications infrastructure, as it is traditionally assumed in regional development strategies, but at the use of this infrastructure for social projects. This means that social and infrastructure projects are not identified, but separated. On the contrary, it is recommended that corporate governance of quality of life in the region in the digital economy should be focused on supporting the development of the information society. As a result, the development of telecommunications infrastructure shifts from government-funded infrastructure projects to nonprofit business activities.