The purpose of the research is to investigate the effects of digitalization on the business and competitive environment, the advantages it promises, clarifying the features of the formation of the business and competitive environment within the digital economy, as well as to develop proposals and recommendations in the direction of the formation of a favorable business and competitive environment with the application of digital technologies.

The methodology of the research - induction, deduction, analysis, synthesis, comparative analysis methods were used during the research work.

The practical importance of the research – the suggestions and recommendations put forward during the research in the direction of forming a favorable business and competitive environment with the application of digital technologies can be applied in the development of the region (Eastern Zangezur economic region) and in the development of the private sector in the region.

The results of the research - the effects of digitalization are explained, the ways of forming a favorable business and competitive environment with the application of digital technologies are explored.

The originality and scientific novelty of the research - although numerous and large-scale studies have been conducted in the direction of digitalization, business and competitive environment, regional development, these issues are being comprehensively investigated for the first time. At the end of the article, proposals and recommendations are given in the direction of creating a favorable environment in the region, specifically in Eastern Zangezur economic region, the wide application of digitalization in the direction of the development of the private sector, and the improvement of infrastructure provision. 

Keywords: digitalization, business environment, competitive environment, infrastructure provision, smart technologies, regional development index.

http://doi.org/10.59610/bbu2.2024.2.10