Business Environment in Georgia in the Context of Human and Technological Resources: Evolution from the Classical Model to the Digital Era

Levan kikilashvili

Journal number 2 ∘ Levan kikilashvili ∘
Business Environment in Georgia in the Context of Human and Technological Resources: Evolution from the Classical Model to the Digital Era

journal N2 2025

Expanded Summary

This article aims to analyze the productive resources of Georgia—specifically human capital and technological capacity—through the lens of contemporary management theories and practices. In a globally dynamic environment shaped by digital transformation, innovation, and green technologies, the country’s long-term economic success depends significantly on the effective management of its strategic resources.

The research explores structural challenges in Georgia’s labor market, including skills mismatches, demographic shifts, and high levels of informal employment, all of which constrain organizational development and strategic workforce planning. Emphasis is placed on strengthening human capital through reforms in education and vocational training, fostering a robust startup ecosystem, and enhancing public-private partnerships to advance labor force capabilities.

From a technological standpoint, the article reviews the current state of digital infrastructure, highlights the limited utilization of research and development (R&D) potential, and outlines the urgent need for improved innovation management. The study underscores the importance of establishing regional innovation hubs and technoparks to accelerate digital and green transformation among local enterprises.

Analyzed from a managerial perspective, the article addresses strategic issues surrounding the efficient governance of Georgia’s resources. This includes optimizing natural and human capital utilization, reinforcing institutional support for startups, and developing forward-looking governance mechanisms. Special attention is given to the role of the Georgia’s Innovation and Technology Agency (GITA) as a platform for transparent management and inclusive economic growth.

The paper also emphasizes the integration of digital transformation and green innovation into modern management practices as a key enabler for creating a sustainable and competitive economic model. Grounded in both theoretical frameworks and empirical analysis, the study incorporates national and international data and provides recommendations for systemic improvements in management—particularly in education policy, institutional cooperation, and private sector engagement. These strategic approaches aim to optimize resource allocation and enhance the long-term resilience and developmental potential of Georgia’s economic system.

In conclusion, the article presents a set of strategic management-based recommendations designed to promote effective resource redistribution, organizational efficiency, and institutional reforms, ultimately supporting Georgia’s managerial and economic sustainability.

Key Words

Human Capital; Digital Transformation; Innovation Policy; Labor Market; Startup Ecosystem; Green Technologies; Resource Management; Strategic Planning; Organizational Development; Innovation Management; Technological Transformation.

EKONOMISTI The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.36172/EKONOMISTI DOI: 10.52340/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 2 ∘ Levan kikilashvili ∘ Business Environment in Georgia in the Context of Human and Technological Resources: Evolution from the Classical Model to the Digital Era journal N2 2025 Expanded Summary This article aims to analyze the productive resources of Georgia—specifically human capital and technological capacity—through the lens of contemporary management theories and practices. In a globally dynamic environment shaped by digital transformation, innovation, and green technologies, the country’s long-term economic success depends significantly on the effective management of its strategic resources. The research explores structural challenges in Georgia’s labor market, including skills mismatches, demographic shifts, and high levels of informal employment, all of which constrain organizational development and strategic workforce planning. Emphasis is placed on strengthening human capital through reforms in education and vocational training, fostering a robust startup ecosystem, and enhancing public-private partnerships to advance labor force capabilities. From a technological standpoint, the article reviews the current state of digital infrastructure, highlights the limited utilization of research and development (R&D) potential, and outlines the urgent need for improved innovation management. The study underscores the importance of establishing regional innovation hubs and technoparks to accelerate digital and green transformation among local enterprises. Analyzed from a managerial perspective, the article addresses strategic issues surrounding the efficient governance of Georgia’s resources. This includes optimizing natural and human capital utilization, reinforcing institutional support for startups, and developing forward-looking governance mechanisms. Special attention is given to the role of the Georgia’s Innovation and Technology Agency (GITA) as a platform for transparent management and inclusive economic growth. The paper also emphasizes the integration of digital transformation and green innovation into modern management practices as a key enabler for creating a sustainable and competitive economic model. Grounded in both theoretical frameworks and empirical analysis, the study incorporates national and international data and provides recommendations for systemic improvements in management—particularly in education policy, institutional cooperation, and private sector engagement. These strategic approaches aim to optimize resource allocation and enhance the long-term resilience and developmental potential of Georgia’s economic system. In conclusion, the article presents a set of strategic management-based recommendations designed to promote effective resource redistribution, organizational efficiency, and institutional reforms, ultimately supporting Georgia’s managerial and economic sustainability. Key Words Human Capital; Digital Transformation; Innovation Policy; Labor Market; Startup Ecosystem; Green Technologies; Resource Management; Strategic Planning; Organizational Development; Innovation Management; Technological Transformation.