The role of digitalization and import substitution in improving the financial standing of St. Petersburg enterprises

Aim. The presented study aims to investigate the potential benefits of digitalization and import substitution for restoring the financial standing of St. Petersburg enterprises under the influence of crisis factors.

Tasks. The authors conduct an economic analysis of the potential benefits of digitalization and import substitution for restoring the financial standing of enterprises in Russia in general and St. Petersburg in particular; analyze the financial standing of St. Petersburg enterprises in 2020–2022 to identify the most affected industries and beneficiaries of the current crisis; identify problematic aspects of the innovative development of St. Petersburg enterprises in the context of import substitution and digitalization; develop measures to improve its level.

Methods. The study uses systems and logical approaches, economic-statistical and general scientific methods, including methods of comparative, economic, and financial analysis.

Results. Trends in the development of the Russian economy under modern conditions are considered. The financial standing of St. Petersburg organizations are analyzed by type of economic activity and its dynamics in 2020–2022. Digitalization and import substitution are identified as factors affecting the development of the financial standing of enterprises. Emphasis is placed on the ways of using artificial intelligence systems and automation technologies in production processes. A SWOT analysis of macroeconomic factors affecting the innovative development of St. Petersburg enterprises in the context of import substitution is performed.

Conclusions. Factors facilitating the restoration of the financial standing of St. Petersburg organizations include accelerated digitalization and import substitution. Analysis of the financial standing of St. Petersburg organizations in 2020–2022 shows that some industries have managed to adapt their business processes to the new conditions, while others remain in a difficult economic state and are looking for ways to recover. However, St. Petersburg enterprises have the opportunity to capitalize on the benefits of digitalization for recovery. Introduction of artificial intelligence is particularly important in the current crisis situation. A sound innovation policy for expanding import substitution and the range of available products is also an essential measure. The results of the study can be used to restore small and medium enterprises in St. Petersburg, increase investment activity in the region, solve economic problems, and implement measures to get on the path of sustainable growth of the city’s economy.

1. On the national goals and strategic objectives of the development of the Russian Federation for the period up to 2024. Decree of the President of the Russian Federation No. 204 of May 7, 2018. Official website of the President of Russia. URL: http://www.kremlin.ru/acts/bank/43027 (accessed on 15.07.2022). (In Russ.).

2. On conducting an experiment on the digital transformation of the provision of services, support measures and services for the development of small and medium-sized businesses. Decree of the Government of the Russian Federation of December 21, 2021 No. 2371. Official website of the Government of Russia. URL: http://government.ru/docs/all/138508/ (accessed on 15.07.2022). (In Russ.).

3. Publications. Office of the Federal State Statistics Service for St. Petersburg and the Leningrad Region (Petrostat). URL: https://petrostat.gks.ru/publications/ (accessed on 15.07.2022). (In Russ.).

4. Makarov M., Ivleva E., Shashina N., Shashina E. Transforming entrepreneurship factors and technologies in the digital economy. In: Digital economy and finances (ISPC-DEF 2020): Proc. 3rd Int. sci.-pract. conf. Amsterdam: Atlantis Press; 2020:22-25. DOI: 10.2991/aebmr.k.200423.005

5. Mitic I. Gig economy statistics: The new normal in the workplace. Fortunly. Feb. 17, 2022. URL: https://fortunly.com/statistics/gig-economy-statistics/#gref (accessed on 10.07.2022).

6. Aptekman A., Kalabin V., Klintsov V., Kuznetsova E., Kulagin V., Yasenovets I. Digital Russia: A new reality. Moscow: McKinsey & Company CIS; 2017. 133 p. URL: http://www.tadviser.ru/images/c/c2/Digital-Russia-report.pdf (accessed on 20.07.2022). (In Russ.).

7. Gillham J. The macroeconomic impact of artificial intelligence. London: PwC; 2018. 78 p. URL: https://www.pwc.co.uk/economic-services/assets/macroeconomic-impact-of-ai-technicalreport-feb-18.pdf (accessed on 30.07.2022).

8. Makarov M.Yu. The impact of artificial intelligence on productivity. Ekonomika i upravlenie = Economics and Management. 2020;26(5):479-486. (In Russ.). DOI: 10.35854/1998-1627-2020-5-479-486

9. Schwab K. The fourth industrial revolution: What it means and how to respond. Foreign Affairs. Dec. 12, 2015. URL: https://www.foreignaffairs.com/articles/2015-12-12/fourthindustrial-revolution (accessed on 30.07.2022).