DIGITAL CHANGES IN THE ECONOMY: ADVANCED OPPORTUNITIES FOR DIGITAL INNOVATION

The article considers the main changes taking place in the economy due to the development of information technologies. Industry 4.0, the fourth industrial revolution, the digitalization of the economy, and digital management are exactly the new realities in management that are rapidly changing the social production and the life of society in general. Many researchers speak of an unprecedented rate of change. But in order to be able to take advantage of progress, one needs a flexible environment ready for constant updates. At that, the main components of such an environment should be innovative technological infrastructure and psychological readiness of contemporary society, business, and the state to master advanced technologies and use them in their activities. It is these factors that influence digitalization as a phenomenon that creates a new level of development of the economic and social sector, the effectiveness of public administration, corresponding to the concept of Smart State. The present study was carried out using the methods of system approach, as well as statistical and economic analysis. Over the past two decades, Industry 4.0, having impact on organizations, industries, and consumer markets, has created new models of interaction between market participants, i.e. the business environment.