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The digitalization crisis in the knowledge economy
The purpose of this study is to explore the phenomenon of a "digitalization crisis" in economic development and
to identify its impact on and implications for the firm-level innovation. The quest for the digitalization of society is predicated on the assumption that collection and processing of an ever-increasing amount of data will provide a new boundless source for the extraction of knowledge. Throughout the scientific and technological progress, however, data has grown at a faster pace than the intellectual and computational capacity of society to process them. Digitalization is no exception. Materials and research methods include exploring the IT sector as a resource for developing innovations in a digitalized society. The factual basis of the study comprises analytical reports of consulting IT companies (IDC, McKinsey), results of studies of experience to date of IT adoption in business settings, and official statistical data. The study considers approaches to evaluation of data access efficiency and data processing impact on economic decision making. The results of this study show that there is a crisis that presents itself in the inability of IT infrastructure to provide companies with effective access to digital data in the course of their innovation. At the same time, the volume of digital data is growing exponentially due to the spread of the Internet of Things and the increasing frequency of interactions between citizens and digital services and platforms. The crisis prevents businesses from extracting knowledge from the data flow to develop innovations. Overcoming competence of the company to improve its organizational structure, business model and human capacity. The role of external
environment is to create favorable conditions for companies to access innovation resources, including data, competences and technologies.