=Paper=
{{Paper
|id=Vol-2740/20200386
|storemode=property
|title=Regional Policy of Advanced ICT in the Minds of Forming Economy
Knowledge
|pdfUrl=https://ceur-ws.org/Vol-2740/20200386.pdf
|volume=Vol-2740
|authors=Oksana Zakharova,Nataliia Podluzhna,Oksana Yakusheva,Oleksandr Yakushev
|dblpUrl=https://dblp.org/rec/conf/icteri/ZakharovaPYY20
}}
==Regional Policy of Advanced ICT in the Minds of Forming Economy
Knowledge==
https://ceur-ws.org/Vol-2740/20200386.pdf
Regional Policy of Advanced ICT in the Minds of
Forming Economy Knowledge
Oksana Zakharova1[0000-0001-5793-6203], Natalіia Podluzhna2[0000-0003-4366-4969],
Oksana Yakusheva1,3[0000-0002-4849-0323] and Oleksandr Yakushev1,4[0000 0002 0699 1795]
1
Cherkasy State Technological University, 460, Shevchenko Blvd, Cherkasy,
Ukraine
2
Donetsk National Technical University, 2, Shibankova Square, Pokrovsk, Ukraine
3
Individual-entrepreneur Yakusheva Oksana Viktorivna, 46/20, Microdistrict
Lazurniy, Pokrovsk, Ukraine
4
Individual-entrepreneur Yakushev Oleksandr Volodumurovich, 13, Tolstoy str,
Pokrovsk, Ukraine
bonheur5576@gmail.com, podluhzna@gmail.com,
ksyushanovickay@gmail.com, aleksandro@i.ua
Abstract. The purpose of this article is to determine the disproportions of the
development of the regions of Ukraine and establishing common characteristics
in the processes of spreading the latest information and communication
technologies. This will determine the prospects for the formation of a
knowledge economy in the country. The method of generalization and
systematization, cluster analysis and cartography were used to determine the
object of research. The clustering of the regions of Ukraine for the conditions of
2009 and 2018 years proceeded. Five homogeneous clusters were identified that
differ in the degree of dissemination of information and telecommunication
technologies. This was characterized by different levels of willingness for
the formation of the knowledge economy in a separate region and the whole
country. There were established vectors for the strategic development of the
regions of Ukraine for each cluster that are directed at the spreading of
information and telecommunication technologies. They serve as a key tool for
the formation of the knowledge economy in the country. There were also
substantiated the possible results from the implementation of measures to
improve the functioning of the country in this field of activity.
Keywords: Region, Information and Communication Technologies,
Knowledge Economy, Cluster Analysis, Internet, Mobile Communication.
1 Introduction
The use of information and telecommunication technologies (ICT) at the regional
level accelerates the formation of a knowledge economy (KE) in the country. This is
to create conditions for sustainable socio-economic growth and the country's gradual
recovery from the financial and economic crisis. The functioning of e-governance, the
increase in the Internet audience from the population, enterprises, institutions and the
public sector, the increase in the volume, final usefulness and quality of Internet
Copyright © 2020 for this paper by its authors. Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
services, the increase in the demand for mobile services, the development of
information infrastructure and free access to its use will accelerate processes for
obtaining, disseminating and accumulating knowledge and expanding the potential
capabilities of users of the latest ICT. Therefore, the use of ICT at the regional level
as a factor in enhancing the economic development of a region and a knowledge-
based country is very relevant. At the same time, the main vector of research should
be aimed at forming the foundations of a regional policy for the dissemination of ICT
in the regions of the country, it will gradually bring it closer to KE [1].
2 Methodology and Tools of Research
Five statistical indicators were selected as the research methodological base, which
from different sides characterize the level of ICT spread in the regions of Ukraine as
one of the main tools for its knowledge-based development, specifically: the number
of subscribers by type of communication services (Internet services, mobile
communications, cable television), the income of enterprises from their provision
(Internet services and mobile communications) [2]. The information base of the study
was the statistical data on the use of ICT, presented in a regional context and reflected
by the State Statistics Service of Ukraine in the statistical bulletin “State and
development of communication in Ukraine” [3; 4]. At the same time, the choice of
indicators was limited by the incomplete reflection of the statistical information given
by regions and was based on those data that were provided for public use. According
to the chronological basis of the study, there were taken two years – 2009 and 2018
[3-6]. The choice of the starting point of the study is due to the fact that it was the
year that official statistics began to take into account the studied indicators for the
regions of Ukraine. The final point for the study was the last year of reporting the
State Statistics Service, which was used to group regions by selected indicators. So,
the methodological basis of the study was formed in such a way that should allow an
objective assessment of the dynamism of ICT distribution processes in the regions of
Ukraine and establish trends in the known development of its regions.
There can be used two groups of methods, in order to identify development
patterns of the regions of Ukraine according to the criterion of the spread of ICTs and
the prospects for the formation of KE and the installation of its similar essential
features [7]. The first group includes the methods of the main components and factor
analysis, which allow us to represent the original attribute space in the form of a
certain combination of signs. However, the main drawback of these methods is certain
difficulties that arise at the stage of interpretation of the research results. The methods
of cluster analysis, the extreme grouping of signs and other methods related to the
second group allow us to avoid these difficulties and therefore are more appropriate
for use. Consequently, in order to assess the degree of ICT spread in the regions of
Ukraine, there was chosen the cluster analysis method, which allows forming
homogeneous groups (clusters) based on the analysis of the initial features.
The application of the cluster analysis method is based on a preliminary
determination of the number of clusters on which the regions of Ukraine will be
grouped. To do this, using the Sturges rule, the optimal number of clusters with equal
intervals was calculated. It was found that the optimal number of clusters for solving
the problem of compressing the information space of regional data by the criterion of
the degree of ICT distribution is five.
In the process of performing cluster analysis, there is the proceeding of initial
digital or textual information, which should be normalized and presented as functions
of the distance between the indicators. A measure of the relationship between
quantitative features (in our case, they are indicators of assessing the spread of ICT in
the regions of Ukraine) are Euclidean distance indicators. Technologically, this process
was carried out using the “Data Analysis” toolkit of the Science Hunter portal [8].
3 The Results of the Clustering of the Regions of Ukraine by
the Degree of Spreading ICT
Table 1 shows the distribution of the regions of Ukraine among clusters, where the
bold type indicates the regions that have a stable membership in the cluster for two
years of research [2].
Table 1. The Results of the Clustering the Regions of Ukraine In Terms of the Distribution of
Information and Communication Services in 2009 and 2018.
Cluster 2009 2018
Vinnytsia, Zhytomyr, Kyiv, Zaporizhia,
Vinnytsia, Zhytomyr, Kyiv,
I Lugansk, Lviv, Mykolayiv, Poltava,
Cherkasy, Chernihiv regions
Sumy, Chernihiv regions
Volyn, Zakarpattia, Ivano-Frankivsk, Volyn, Zakarpattia, Ivano-Frankivsk,
II Kirovograd, Mykolaiv, Rivne, Sumy, Kirovograd, Rivne, Ternopil, Kherson,
Ternopil, Kherson, Khmelnitsky regions Khmelnitsky, Cherkasy, Chernivtsi regions
Dnipropetrovsk, Donetsk,
III Dnipropetrovsk region
Kharkiv regions
Zaporizhzhia, Luhansk, Lviv,
IV Donetsk, Kharkiv regions
Poltava regions
V Odesa region Odesa region
Based on the typification of the structural features of the regions of the country, five
clusters were discovered with an unequal level of ICT use, characterizing various
basic conditions for the formation of KE in them. The results of scaling and a
generalized assessment of the state of development of ICT services in established
clusters of Ukraine are given in Table 2.
Table 2. Generalized values of indicators for assessing the spread of information and
communication services in cluster entities of the regions of Ukraine in 2018.
Clusters
Indicators
I II III IV V
Internet services
Number of subscribers Mobile Connection
Cable TV
The income of enterprises Internet services
from the provision of Mobile Connection
Legend:
– unsatisfactory and minimum possible indicator level
– satisfactory and average level of indicator
– the highest possible level of indicator
The general trend for cluster I is an increase in the number of Internet service
subscribers, a decrease in the number of cable television subscribers, and slight
fluctuations in the direction of increasing the number of mobile subscribers. So, the
interest of enterprises and the population is shifting towards Internet services, which
opens up enormous opportunities for the development of KE in regions of Ukraine.
The regions of cluster II demonstrate the poor state of ICT distribution in Ukraine.
This means, that their condition regarding the use of telecommunication tools and
communication means remains unsatisfactory and hinders the dissemination of the
knowledge component of the socio-economic development of the country. The
volume of services provided on the Internet for the region is distribution and using
information by regional enterprises are limited [5; 6].
Cluster III in 2009 included Dnepropetrovsk, Donetsk and Kharkiv regions, and in
2019 the cluster represents exclusively the Dnipropetrovsk region. In 2009, this
cluster was characterized by maximum and above-average levels of all analyzed
indicators of ICT distribution, with the exception of the number of Internet users.
Cluster IV in the base year consisted of Zaporizhzhia, Luhansk, Lviv and Poltava
regions, which were characterized by the values of all the studied indicators below the
average level and only the Lviv region had a value of the enterprise income from
providing Internet services that exceeded the average level.
In 2018, the composition of the IV cluster completely changed which demonstrate
the highest possible level of providing the population with mobile communications
and high income from the provision of these services in comparing to other regions.
This is due to increased consumer demand for mobile services due to the additional
use of modern mobile gadgets, due to the interest of legal entities and individuals in
acquiring information and telecommunication services, and an increase in the volume
of mobile Internet traffic and coverage of the territory of the regions covered by 3G
networks [9].
The atypical clusterization object that did not join any of the four clusters is the
Odesa region, which became part of the V cluster. The cluster is distinguished by the
maximum values of indicators of the number of consumers of Internet services and
the income from their provision. However, the number of mobile subscribers in the
region was less than the average level in Ukraine.
It should be noted that during the study period in the regions that were part of the
II, IV, and partially I clusters, there was a tendency to decrease the number of cable
television subscribers, this can obviously be due to the appearance of new high-tech
capabilities of television services.
It should be mention that the data that characterize the Donetsk and Luhansk
regions were significantly affected by the processes of loss of Ukraine’s control over
part of its territory in the result of the military conflict. In this regard, it can be argued
about the reliability and incompleteness of information in 2018.
4 Vectors of Regional ICT Dissemination Policy as a Tool for
the Formation of KE
Based on the results of the study, it is proposed to develop the basic vectors of the
regional ICT distribution policy (Table 3) in the regions of the country.
Table 3. Vectors of strategic development of the regions of Ukraine, aimed at the dissemination
of ICT services as a tool for the establishment of KE in the region and the country.
Cluster Strategic vectors of development
Active distribution of Internet services, support and further development of the
I
mobile communications market, development of IT business
The development of markets for Internet services and mobile communications,
developing the IT business by attracting and retaining IT specialists in the regions of
the cluster, disseminating information about the possibility of information services
II
from the outside local authorities and management, optimizing pricing for the
provision of cable television services, increasing the density of coverage of
communication networks and the Internet
Accelerated development of the distribution of Internet-services, the development of
III,
IT business, the increase in investment in ICT, improving the quality of access to the
IV
Internet, the activation of grant writing in the field of ICT
Keeping the current state of ICT, diversification of ICT services, development of IT
V business, development of measures to improve the quality of information and
communication services, loyalty programs for mobile subscribers and the Internet
Expected results from the implementation of measures to improve the functioning of
the ICT sector:
❖ Improving literacy and the development of digital intelligence in the field of
ICT for the population and personnel of enterprises. The motivation for new
knowledge and application of the latest technologies.
❖ Development of information infrastructure in the regions, acceleration of
the creation of SMART-city technologies.
❖ The growth of Gross Regional Product in Ukraine due to the development of
the digital and network economy, creation of virtual enterprises/
❖ The development of micro entrepreneurship, small and medium-sized
businesses due to its promotion on the Internet.
❖ Creation of new jobs based on the latest ICT.
❖ Stimulation of innovative processes in all spheres of life of the population
and business.
❖ Ensuring the development of the process of formation of the KE in the
regions of Ukraine.
❖ The emergence of wide opportunities for dialogue between the population,
business, local authorities and the government.
❖ The development of informatization by accelerating the process of acquiring
knowledge and transferring it among interested parties.
5 Conclusions
The study, based on cluster analysis, revealed the presence of five homogeneous
cluster groups of regions of Ukraine, which differ in the degree of ICT distribution
and a different level of readiness for the formation of KE in the country. The
similarity regions of I cluster is due to an unsatisfactory quantitative measurement of
the Internet audience and the low penetration of Internet services in all areas of the
region’s vital functions that are part of it. There is a satisfactory level of demand for
mobile services and income from their provision.
Cluster II described the process of disseminating information and communication
services as unsatisfactory and minimal in terms of demand for Internet services,
mobile communications and cable television and the income from their provision.
That cluster requires more significant efforts when implementing regional strategies
aimed at stimulating knowledge-based development in the regions, equalizing and
further smoothing the imbalances between them.
The areas that are included in the III, IV and V clusters are characterized by
advantages in the dissemination of ICT in comparison with other regions of Ukraine.
So, cluster III as a part of the Dnipropetrovsk region has the maximum number of
cable TV users. Cluster IV is the leader in the number of mobile communications
subscribers. Cluster V has the largest audience of Internet users’ service. Moreover,
the V cluster demonstrates the best state in the processes of dissemination of
information and communication services, indicates its uniqueness with respect to the
selected research criteria, stability in the development of the use of the latest
technologies, progressiveness and acceleration of ICT distribution. That is, the
acceleration of the pace of the formation of KE in the Odesa region can be achieved
through the tools of the network and digital economies, which can be realized by
further supporting the spread of innovative technologies in all spheres of life.
So, the clustering the regions of Ukraine by the criterion of the spreading of ICT in
them allowed us to establish significant disproportionate fluctuations in the state of
the application in the areas of the latest communication technologies and determine
priorities in the development of regional of regional policy. The development and
implementation of functional strategies for regions will contribute to the accumulation
of intellectual capital, open up greater opportunities for the development of business,
science, education, accelerate the processes of their integration, and therefore the
establishment of KE.
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