Economic Effects of Digital Transformation in Georgia: Infrastructure, Business, and Human Capital

Giorgi Sutidze

Journal number 1 ∘ Giorgi Sutidze ∘
Economic Effects of Digital Transformation in Georgia: Infrastructure, Business, and Human Capital

DOI: 10.52340/ekonomisti.2026.01.14

Expanded Summary

Digital transformation has become one of the most important factors of modern economic development and determines the long-term development of countries. The introduction of information and communication technologies (ICT) significantly changes production processes, business models and the structure of the labor market. This process contributes to the emergence of innovative services and the creation of new jobs. The integration of digital processes creates the need for new dynamics of business and the economy, which requires the flexibility of organizations, innovative thinking and the continuous development of human capital (OECD, 2023).

Georgia, as a country with a developing economy, has the opportunity to ensure the development of technological infrastructure, digitalization of business and improvement of the quality of human capital against the background of these processes. As international studies show, the development of digital infrastructure, such as high-speed internet and cybersecurity standards, directly affects the country\\'s economic sustainability and innovation (World Bank, 2022).

The digitalization of businesses in Georgia creates opportunities for a number of sectors to increase efficiency and tap new markets, especially in the case of small and medium-sized enterprises (SMEs). However, as studies indicate, the main barriers include a lack of investment, a shortage of digital skills, and an imperfect legislative framework (European Commission, 2021).

Human capital development includes both skills development and digital skills training and the adaptation of the education system to modern requirements. In the case of Georgia, the success of digital transformation is linked to coordinated strategies between the state, educational institutions, and the private sector (UNDP, 2023).

This article, based on the thematic literature, discusses the economic effects of digital transformation in Georgia in three main areas: digital infrastructure, business digitalization, and human capital. The article combines theoretical interpretation, local and international research, and empirical data analysis, which provides a comprehensive assessment of the current state and potential prospects of the countrys digital development.

Keywords: digital transformation, economic development, infrastructure, business, human capital.

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

DOI: 10.52340/EKONOMISTI DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 1 ∘ Giorgi Sutidze ∘ Economic Effects of Digital Transformation in Georgia: Infrastructure, Business, and Human Capital DOI: 10.52340/ekonomisti.2026.01.14 Expanded Summary Digital transformation has become one of the most important factors of modern economic development and determines the long-term development of countries. The introduction of information and communication technologies (ICT) significantly changes production processes, business models and the structure of the labor market. This process contributes to the emergence of innovative services and the creation of new jobs. The integration of digital processes creates the need for new dynamics of business and the economy, which requires the flexibility of organizations, innovative thinking and the continuous development of human capital (OECD, 2023). Georgia, as a country with a developing economy, has the opportunity to ensure the development of technological infrastructure, digitalization of business and improvement of the quality of human capital against the background of these processes. As international studies show, the development of digital infrastructure, such as high-speed internet and cybersecurity standards, directly affects the country\\'s economic sustainability and innovation (World Bank, 2022). The digitalization of businesses in Georgia creates opportunities for a number of sectors to increase efficiency and tap new markets, especially in the case of small and medium-sized enterprises (SMEs). However, as studies indicate, the main barriers include a lack of investment, a shortage of digital skills, and an imperfect legislative framework (European Commission, 2021). Human capital development includes both skills development and digital skills training and the adaptation of the education system to modern requirements. In the case of Georgia, the success of digital transformation is linked to coordinated strategies between the state, educational institutions, and the private sector (UNDP, 2023). This article, based on the thematic literature, discusses the economic effects of digital transformation in Georgia in three main areas: digital infrastructure, business digitalization, and human capital. The article combines theoretical interpretation, local and international research, and empirical data analysis, which provides a comprehensive assessment of the current state and potential prospects of the countrys digital development. Keywords: digital transformation, economic development, infrastructure, business, human capital.