SYSTEM-DYNAMIC MODELING OF DIGITAL PROCESSES IN REGIONAL DEVELOPMENT

Over the past decade many developments have taken place in the field of automation of cars, trucks and public transport. The penetration rate of Level 2 partially automated vehicles in mixed traffic is increasing, Level 3 conditional automation is now supported by legislation, and different experimental and commercial applications of Level 4 high automation in mixed traffic exist. This shows that automated driving developments should be considered when making decisions about investments in physical and digital infrastructure. However, there are still many uncertainties regarding future penetration rates, the level of connectivity, the operational design domain, and the expected impacts of automated driving. This paper proposes four scenarios for automated driving developments in the Netherlands in 2040 and 2060: 1) Late transition, 2) Automated vehicles on main roads, 3) Car-topia, and 4) Share-topia. To derive these scenarios, a new “switchboard” method is introduced in which multiple driving forces for automated driving can be varied. The main driving forces were identified based on expert surveys. For each scenario, a modelling approach is used to compute the impact of automated driving on vehicle kilometres driven and congestion. The switchboard method offered more flexibility than existing scenario methods. The model-based impact assessment provided more conservative and probably more accurate insights into the expected impacts of automated driving on vehicle kilometres driven and congestion than expert estimates from the literature. The results show that in all scenarios automation leads to an increase in the number of trips, vehicle kilometres driven and congestion. In the scenarios with autonomous vehicles, congestion is expected to increase up to 17%. The higher the penetration rates of connected automated vehicles, the smaller the increase in congestion (1.5% -11%). The results indicate that investments in digital infrastructure are needed to prevent capacity reduction due to autonomous driving. The scenarios “car-topia” and “share-topia” may require additional physical infrastructure on motorways and regional roads.

The article examines the primary challenges of urbanization processes for the sustainable development of Ukraine's regions. Based on international programs (“Smart Specialization”, “100 Climate Neutral” and “Smart Cities”), analytical reports of international organizations (UN-Habitat, OECD, World Bank), as well as national strategic documents, the study identifies specific features of urbanization processes in Ukraine, which, taking place in military conditions and in the context of uncertainty and resource constraints, have become the main challenge for sustainable development. At the same time, it is demonstrated that urbanization can provide the basis for the formation of competitive and sustainable “smart regions” provided that technological, socio-economic, and managerial dimensions are effectively integrated, as well as ensuring spatial coherence through inter-municipal and inter-sectoral cooperation. Using examples of successful European cases, the article shows that digitalization, environmental innovations, and e-governance increase national competitiveness, territorial cohesion, and quality of life, provided that digital, social, environmental, and infrastructure innovations are harmoniously combined. The article formulates recommendations for Ukraine, in particular on the development of a national “smart region” strategy, investment in digital infrastructure, implementation of “green technologies”, and strengthening cybersecurity potential. To clearly reflect the regional characteristics of urbanization processes, build a roadmap, implement operational control, and assess effectiveness, which is the basis for making management decisions and the possibility of further analysis and identifying opportunities for implementing the “smart region” concept, the article uses data systematization and visualization. This study proves the need to implement the concept of “smart regions” and adapt international experience to national realities by integrating technology, digital, social, environmental, and infrastructure innovations to improve the quality of life in communities. In addition, the implementation of operational control, reporting, and assessment of the effectiveness of the Roadmap directions will enable informed management decisions on implementing “smart strategies” during the urbanization of Ukraine's regions.

This study investigates the significance of information and communication technology (ICT) adoption, referred to as digital intensity (DI), and its impact on the financial performance of businesses in the manufacturing, utilities, and transportation sectors within Central and Eastern European (CEE) countries. The primary research question focuses on how DI and its components influence key financial indicators across these industries. This study uses data from the EUROSTAT, ENT2 (Comprehensive Enterprise Database), and EMIS (Emerging Markets Information Service) databases to examine financial and digital indicators for 2017–2022. The timeframe was selected to account for methodological changes in EUROSTAT and EMIS reporting. To explore these relationships, the study employs multiple factor analysis (MFA), which integrates interrelated variables from distinct blocks, including DI, profitability, indebtedness, and liquidity. Initially, separate principal component analyses (PCAs) were conducted on each variable block, followed by normalization. A global PCA was then performed on the balanced blocks to map variable relationships in a reduced-dimensional space. The MFA approach also facilitates the visualization of clusters and observations, offering insights into the diverse impacts of DI. The findings reveal that DI significantly affects financial metrics, such as profitability, indebtedness, and liquidity, with integration support systems playing a pivotal role in enhancing profitability and liquidity while mitigating debt. Furthermore, improvements in internet speed and accessibility are associated with enhanced financial performance. This empirical evidence underscores the potential of strategic investments in digital infrastructure and technology to enhance financial resilience and maintain competitive advantage in a digitalized economy. The study highlights a critical gap in the literature concerning the sector-specific effects of DI on financial performance in CEE industries and emphasizes the need for tailored digital strategies that account for the unique distribution channels and customer characteristics of each sector.

This study investigates the role of remote work in enhancing the resilience of rural and remote municipalities in the Nordic countries, highlighting the shift towards hybrid work models. The report presents six case studies, each detailing the context, challenges and opportunities associated with remote work. The study found that many public authorities lack formal remote work policies, relying on pre-existing or pandemic-developed frameworks aimed at work-life balance. The research points to remote work's potential for attracting and retaining residents and skilled workers, crucial for rural development, despite challenges like the need for improved digital infrastructure and the absence of formal policies. Initiatives like co-working spaces and the focus on enhancing regional attractiveness through quality of life and infrastructure investments are seen as key to leveraging remote work for sustainable regional development. However, the study also notes obstacles such as legislative issues and the need for comprehensive strategies to fully realise the benefits of remote work for rural revitalisation. Remote work offers a pathway to sustainable development in Nordic regions by introducing new skills, enhancing business innovation, and improving public services, which helps combat out-migration and boosts quality of life. For maximum impact, investments in digital infrastructure, supportive work environments, and regional attractiveness are crucial, paving the way for a more vibrant and sustainable future.

Digital financial inclusion has become one of the important strategies in improving the efficiency of payment systems, especially in developing countries. With increasingly widespread access to digital financial services such as mobile money, e-wallets, and digital payment apps, developing countries have great potential to expand access to financial services and reduce dependence on cash. This study aims to analyze the role of digital financial inclusion in improving the efficiency of payment systems in developing countries. The method used is multiple linear regression analysis, which examines the relationship between digital financial inclusion and payment efficiency through variables such as the percentage of users of digital financial services, people's access to these services, and the number of electronic transactions per capita. The results show that digital financial inclusion has a significant influence on improving payment efficiency, characterized by a decrease in transaction costs and shorter time in the payment process. In addition, it was found that digital infrastructure and digital financial literacy are still challenges that need to be overcome to achieve optimal financial inclusion benefits. This research contributes as suggestion for government policies and investments in digital infrastructure are essential to maximize the role of digital financial inclusion in payment systems

This study analyzed the relationship between digital infrastructure expenditures and the quality of accounting information in municipalities of the state of São Paulo, Brazil. The research adopted a quantitative approach, applying linear regression models to data from 644 municipalities over the period 2019-2023. Variables representing information technology (ICT) expenditure were employed, alongside indicators of accounting information quality from the ranking of the Brazilian National Treasury Secretariat (STN) and transparency indicators based on the index produced by the Federal Council of Administration (CFA). The findings indicate a positive association between higher investment in digital infrastructure and improved quality and transparency in accounting information, suggesting that technological modernization contributes to strengthening public governance. The conclusions reinforce the need for strategic planning in ICT investments and recommend that entities such as the National Treasury, the Federal Accounting Council (CFC), and the Courts of Accounts should consider both the costs and adequacy of digital infrastructure in standard-setting, oversight, and management processes.

This article provides a comprehensive analysis of the transformation of regional public administration systems in Ukraine under martial law, focusing on the role of digital technologies and artificial intelligence (AI) as factors in enhancing the adaptability, efficiency, and sustainability of management decisions. It is shown that martial law accelerates destructive processes in infrastructure and destabilizes the socioeconomic environment, leading traditional linear administrative models to lose their managerial capacity and require innovative restructuring. It proposes considering amalgamated territorial communities as self-regulating systems whose development is possible through a combination of strategic planning, regular monitoring, and increased digital capacity. This article analyzes methodological approaches to the interpretation of “sustainable development” and “development,” highlighting their complementary nature and emphasizing the need for reflexive strategizing as a guide for the transition from inertia to qualitative transformation. AI is considered as a technological infrastructure that facilitates the algorithmization of management processes, increased transparency, forecasting of development dynamics, and policy inclusiveness. Key risks are also identified: privacy threats, algorithmic manipulation, unequal access to services, and the dangers of social injustice. Based on empirical data from the Digital Transformation Index (Q1 2025), the strengths and weaknesses of regional and community digitalization are identified: high indicators in public services and digital skills, and gaps in digital infrastructure and the digital economy. Examples of community leaders are highlighted. Practically oriented areas of AI application are presented (analytics, forecasting, GIS, crisis management, healthcare, education, logistics, monitoring and oversight). It is proven that the successful integration of AI into regional governance requires comprehensive coordination between the state, local government, business, and the scientific community, a clear moral and legal framework, investment in digital infrastructure, and improved digital literacy. Strategic approaches to overcoming barriers are proposed: medium-term planning, development of local digital infrastructure, inclusive educational programs, and mechanisms for democratic control over algorithmic decisions.

The advent of technologies has stimulated the economic growth of western countries, however, some Asian and African countries are among the Lower Middle Income Countries due to lack of technology adoption and digitally skilled human capital. The use of technologies produces digital competent human capital stock that accelerates economic growth. The prime goal of this article is to explore dynamics of technology adoption, technology innovation, human capital and skill development for Lower Middle Income Countries region over the period 2000-2016 by Generalised Method of Moments and cross sectional dependence. New technology adoption, technology innovation and human capital & skill development indices are formulated. The empirical findings indicate that human capital development & skill and investment have positive linkage with Lower Middle Income Countries economic growth while technology adoption and innovation have different linkage across the Lower Middle Income Countries regions. The panel error correction method was applied to estimate short run dynamics and convergence rate. The fully modified ordinary least square was applied to authenticate whether the long run estimates are consistent and valid for policy implications. The findings propose policy implications for advance technology adoption and innovation with the focus on human capital development & skill and investment in Lower Middle Income Countries region.

Bridging the green gap: aligning rwandan medical imaging education with national and global sustainability goals.

Given the increasing uncertainty in the global economy, enhancing urban economic resilience is now paramount to advancing coordinated regional development. As a key force reshaping factor allocation and economic structures, the digital economy’s role in empowering urban economic resilience holds significant theoretical and practical value, especially for closely linked riverine urban agglomeration. Using 2010–2022 panel data of 41 Yangtze River Delta cities, this paper constructs a multidimensional economic resilience evaluation system. Employing two-way fixed effects, instrumental variables, and Spatial Durbin Model, it systematically examines the impact mechanism, heterogeneity, and spatial spillover of the digital economy on urban economic resilience. The findings indicate the following: (1) The digital economy significantly enhances urban economic resilience. (2) Its empowering effect exhibits notable regional disparities, with metropolitan areas and core cities benefiting more substantially. (3) The digital economy strengthens surrounding cities through spatial spillovers, yet some peripheral cities remain trapped in “low–low” agglomeration. This paper offers important insights for global riverine urban agglomerations: promoting the digital economy should prioritize cross-regional governance, enhancing core cities’ leading role, and boosting targeted investment in digital infrastructure and innovation in peripheral areas. This approach is essential for narrowing regional differences and improving overall resilience and sustainability.

Inclusive green growth is an effective strategy for achieving sustainable development in rural areas. In the digital economy era, it is crucial to examine whether rural digital development and inclusive green growth can be harmoniously integrated. This study investigates the spatial and temporal evolution of the coupled coordination between digital village construction and rural inclusive green growth in China. Utilizing panel data from 30 provinces from 2011 to 2022, we assess development levels using the entropy weighting method and analyze interdependencies with a coupling coordination model. The results indicate an upward trend in coupling coordination, with significant regional disparities, and it is slowly taking on the characteristics of spatial clustering. Economically advanced regions exhibit higher coordination levels, attributed to stronger economic foundations and better fiscal resources, enabling effective investments in digital infrastructure and green growth initiatives. Additionally, factors such as urbanization rate, innovation levels, reduction in natural disasters, increased financial support for agriculture, and improved large-scale operations positively contribute to this coordination. These findings offer insights for targeted regional development strategies, enhancing the synergy between digital transformation and sustainable rural development.

In the context of global warming and the clean energy transition, the rapid development of the digital economy, a highly technology-intensive economic form, has an important impact on the clean energy transition. Examining how the growth of the digital economy has affected the renewable energy transition has broad implications for the creation of national policies, business planning and design, and everyday human behavior. The paper uses a two-way fixed-effect model to empirically investigate the impact of the development of the digital economy on the clean energy transition based on Chinese municipal panel data from 2013 to 2022. It also sorts out the intrinsic mechanism of the digital economy affecting the clean energy transition from a theoretical level. Finally, it tests the indirect effects of technological innovation and upgrading industrial structure using endogeneity analysis and a robustness test. The study finds that (1) digital economy development effectively promotes clean energy transition; (2) the digital economy influences the transformation of renewable energy through two intermediary channels: technological innovation and upgrading of industrial structures; (3) there is geographical variation in how the digital economy affects the growth of the clean energy transformation. Lastly, policy recommendations are provided for boosting investment in digital infrastructure, strengthening the digital technology base, and deepening and broadening the interaction of the digital and real economies.

<p>This study addresses the challenge of enhancing pedagogical content knowledge (PCK) performance among primary education teachers in Peru, particularly in the context of increasing reliance on digital platforms. With significant regional and demographic disparities in access to digital resources, this research aims to evaluate the effectiveness of digital platforms in supporting teaching practices. Using a quantitative, cross-sectional design, the study analyzed data from the 2022 national unique test (PUN), which assesses cognitive and pedagogical skills among teachers, and a digital platform integration questionnaire (DPIQ) administered to 2,000 teachers. The findings revealed a positive correlation between digital platform usage and PCK performance, with younger and female teachers demonstrating higher scores. Urban teachers also outperformed their rural counterparts, highlighting regional disparities in digital access. The study concludes that integrating digital platforms into teaching practices can enhance PCK performance, but there is a need for targeted professional development and investment in digital infrastructure, particularly in underserved areas. Addressing these disparities is crucial to ensuring that all teachers can benefit from digital advancements, ultimately improving educational outcomes.</p>

This study explores the regional and temporal effects of e-government development on economic growth in Vietnam. While prior literature recognizes the role of digital governance in enhancing administrative efficiency and institutional performance, limited attention has been paid to spatial spillovers and the evolving nature of these impacts. Employing provincial panel data from 2018–2022 within a spatiotemporal heterogeneity framework, the study identifies pronounced regional variation and a temporal learning process in the benefits of e-government. The findings highlight the importance of institutional capacity and local context. Policy implications call for regionally tailored implementation strategies, targeted support for underperforming provinces, and sustained investment in digital infrastructure and human capital to foster equitable digital development and regional economic growth.

Abstract. The article reveals the conceptual model TAM–SAM–SOM in the context of the digital transformation of the construction industry, which allows for a structured and strategic assessment of the potential of digital technologies in the implementation of construction projects. The application of this model, traditionally widespread in marketing research to determine market capacity, is adapted to the tasks of managing digital resources, tools and technologies at different levels of construction activity. TAM (Total Addressable Market) in the study is interpreted as the total potential of digital construction, which includes the full range of available digital solutions (BIM, digital twins, 3D printing, robotics, ERP systems, data exchange platforms, etc.), capable of ensuring the systemic modernization of the project life cycle from design to operation. SAM (Serviceable Available Market) reflects the part of TAM that can be implemented under the conditions of the existing technical, economic, personnel and institutional capabilities of enterprises in the industry. SOM (Serviceable Obtainable Market), in turn, outlines the realistically achievable share of digital solutions that can be implemented by a specific company or project, taking into account internal resources, organizational and management models, level of digital maturity and external risks. Particular attention is paid to the relationship between the level of digitalization (from basic process automation to an integrated real-time construction management platform) and the effectiveness of implementing each level of the TAM–SAM–SOM model. The author's vision of a digital adaptive framework is proposed, where each level is provided with appropriate analytical tools, technological solutions and change management strategies. The practical significance of the concept lies in its ability to serve as an analytical tool for making strategic decisions regarding investment in digital infrastructure, choosing priority areas of digitalization, and substantiating the expected effect of implementing digital solutions. The TAM–SAM–SOM model is a key component in the formation of digital transformation roadmaps in construction, ensuring logical consistency, flexibility of adaptation, and transparency of management processes.