THE IMPACT OF TECHNICAL PROGRESS AND TECHNOLOGICAL IMPROVEMENT ON THE EFFECTIVENESS OF DIGITAL PRODUCTION, ENTREPRENEURSHIP AND THE ECONOMY

Abstract

The purpose of scientific research is to establish cause-and-effect relationships between technical progress and technological improvement, and the acceleration of the digitalisation of entrepreneurship. It also involves searching for reserves for the digitalisation of business projects that affect production efficiency and the effectiveness of the country's economy. The object of scientific research is the field of knowledge and technology, existing patents and utility models, and scientific and technical articles, analysed in the context of groups of countries by income level. This analysis includes an evaluation of rating indicators and the GII, as well as the expansion of digital opportunities for entrepreneurship, based on existing human capital. The implementation of inventions, utility models and ideas produced by this capital is one of the key drivers of innovative and digital economic development. Methodology. Using dialectical and systemic methods, the impact of technical and technological progress on the movement of the production function curve in digital enterprises was investigated. This revealed a promising reserve of existing innovation with positive dynamics, highlighting the need for a strategic approach to the digitalisation of entrepreneurship. The concretisation method was employed to develop the author's proposals for innovation and the digitalisation of the country's economy. Rsults. The factors that determine the quality and efficiency of a digital enterprise are presented, including harmonisation of costs associated with developing innovative products and digital services, network effects, the growing importance of big data and analytics, resource availability, digital infrastructure, consumption dynamics and working with clients. Analysed statistical data showed that, for post-industrial countries with an innovative approach and a digital strategy, "healthy" competition stimulates digital development as businesses strive to provide higher-quality innovative products and digital services. The findings of the research conducted allowed the assertion to be made that digital entrepreneurship is both the result and the source of continuous scientific and technical achievements, inventions and ideas. Furthermore, the digital changes taking place in its work are based on new technologies that are constantly produced by the scientific world. Practical implications. The dissemination of practical advice has been undertaken, with the objective of maintaining positive dynamics in terms of accelerating innovation and digitalisation of national economies at both the macro and micro levels. Measures to promote the digitisation of traditional entrepreneurship are outlined, including the establishment of scientific, production, research and experimental digital ecosystems based on the country's leading industry-focused universities, and the development and implementation of youth scientific support programmes lasting three, five and seven years, under the names "Youth in Research", "Innovations and Young Researchers", and "Youth. Inventions. Progress". Hold events in leading scientific and technical laboratories under the names "Week of Innovations and Inventions", "Week of Science and Technology" and "Week of the Researcher, Innovator and Inventor". Every science needs individual researchers, inventors and innovators. In the innovation-digital process, the innovator who produces the invention is therefore a valuable "player" and a key link. Value/Originality. After conducting a thorough analysis of the Global Innovation Index ratings by country group and income level, the authors found that China leads the group of countries with above-average incomes in terms of the number of patents and utility models. The leaders of the "Labour and Technology Results" index in terms of knowledge creation remain the three high-income countries of Sweden, Switzerland and the USA. Analysis of the available data revealed that the level of development of intangible assets can accelerate the formation and development of digital entrepreneurship and facilitate business mobility. Technical and technological progress is proposed to be understood through the prism of the formation of Industry 5.0, which is a consistent process of improving and perfecting production and industrial business processes with the aim of producing new products and services while focusing on the quality of existing goods and services. It has been determined that changes in technology and technologies are indicative of transformations occurring in terms of digitalisation in production business processes. Alternatively, enterprises have the capacity to develop and utilise new or improved innovative products and digital services. The overall socio-economic effect of digital entrepreneurship is predicated on the interrelation of technical and technological changes, capital utilisation, and enhanced productivity per employee. It is hypothesised that, in terms of the genesis of Industry 5.0, this will signify the evolution of digital business, enhanced remuneration for proficient workers who possess digital competencies, and an enhancement in the quality and standard of living of the population.