Institutional Genesis of Public Sector Under the Digital Transformation of Economy

Currently the public sector is undergoing a period of transformation associated with the development of digital technologies. That has caused the emergence and development of institutions determining the change in the traditional mechanisms of production and distribution of public goods. The state as a key beneficiary of the public sector is gradually changing its role due to the increased involvement of other economic entities in the process of creating such goods. The contribution examines the key institutions that produce and distribute public goods, shows their modification under the digital technologies expansion. The basic digital platforms used as the sites for the merit goods production are considered. The major aim of this work is to scientifically substantiate the process of introducing institutional innovations in the production and distribution of public goods, as well as to develop practical recommendations on the use of specific tools that contribute to the growth of merit goods production. The contribution reflects the assessment of the of digitalization level for basic institutions that carry out the process of public goods distribution, namely, health, education and cultural facilities. The conclusion is made about a sufficiently high degree of penetration of information technologies into the public sector institutions functioning. The degree to which the Russian society is ready to consume a digital form of public goods is analyzed. The analysis showed the prospects for providing public goods digitally in the areas of culture, education and public services.