Strategic Risks of the Public Administration in the Digital Economy

The current decade is a period of origination and manifestation of the game-changing strategic challenges and threats as well as the geopolitical, socio-economic, institutional, and technological risks that arise from the development and penetration of the digital technologies. The World economy is entering the new stage of its development that implies that the human production, exchange, distribution, and consumption activities are directly connected with the formation, processing, and application of large amounts of information and knowledge that exist in a digital format. The concepts "The digital economy" and "The knowledge-based economy" are becoming inseparable and this has an impact on the digital transformation of the institutions of public administration. The digital technologies are increasing the capabilities of the State to respond the global challenges but at the same time generating the new strategic risks, especially institutional and technological ones. Furthermore, the possible directions of the digital evolution of the State are still discussing, not defined. The paper deals with the concept of the digital transformation of the institutions of the public administration with the risks being taken into account. Conclusion that optimizing the above strategic risks is a critical national priority.

The authors declare no conflict of interest.

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