Knowledge-Based Economic Growth: Strategies for Integrating Digital Transformation in Developing Economies

The aim of the study was to analyse the impact of digital transformation and innovative technologies on economic growth. Regression analysis was employed to identify correlations between innovation expenditure, Internet penetration, gross domestic product levels across 12 countries over the period of 1996-2022. The results indicated that the relationship between research and development expenditure as a percentage of gross domestic product and the level of gross domestic product was significant in most countries. The analysis of China's experience revealed that public investment in the digital economy, as well as the development of artificial intelligence and cloud computing, contributed to industrial modernisation and enhanced public administration. The study confirmed that digitalisation and investment in human capital play a crucial role in shaping the knowledge economy and require a comprehensive approach, including government regulation, the development of innovation ecosystems, the stimulation of digital technologies within the private sector.