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The main trends of online education market development in Russia


Tagarov B.Zh.
(about the author)

Tagarov Bato Zhargalovich – (Baikal State University)

Published in:
Creative Economy
– Volume 12, Number 8 (August 2018)

JEL classification: D22, D82, I21

Keywords: education, knowledge-driven economy, online education, the Internet


Citation:
Tagarov B.Zh. (2018). The main trends of online education market development in Russia. Creative Economy, 12(8), 1201-1212. doi: 10.18334/ce.12.8.39269


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Abstract:

This article highlights the main trends of using Internet technologies in education and provides a description their specific features. We have defined the most popular methods of online education monetization, including paid content, paid certificates, placement of advertisement, etc. The author considers the measures taken by the Russian government to introduce Internet technologies into education, as well as the targets set for a priority project aimed at the development of online education. Analysis of the degree to which online education penetrates the major segments of the education market in Russia is provided. A number of issues that hinder the development of the online education market is revealed, in particular, the issue of shadow employment in this segment is considered.


Highlights:

• Despite of the importance of the education system for modern knowledge-driven economy, in terms of IT penetration it lags behind the trade and financial service areas and many others.
• In 2017, the world education market reached a volume of 5 trillion dollars. 3% of this pertained to the online education market.
• We can define three aspects to using the Internet in Russian education:
1) that is increasing the efficiency of the existing system of educational institutions; 2) developing commercial courses and educational services offered by business; 3) creating free Internet resources that provide educational information.
• There are the following ways to monetize online education: 1) putting up a pay-wall to its content and services; 2) creating a platform for buyers and sellers of educational services and charging commission on their transactions; 3) putting up a pay-wall to receiving educational certificates; 4) collecting advertising revenue; 5) attracting customers to commercial services provided by its creator by means of providing free training.
• The Russian government is developing the system of online education by means of creating a web portal with free online courses available to the public.
• In 2016, the Russian government approved the priority project named Modern Digital Educational Environment in the Russian Federation.
• In 2016 in Russia, online education covered only 1.1% of the educational total market volume, which is less than the worldwide average knowledge. According to expert forecasts, by 2021 the share of online education in Russia will grow to 2.6%, and in the world market — up to 4-4.5%.
• The development of online education in Russia is hampered by the following issues: 1) a high share of the public sector; 2) high average age of staff providing education; 3) the high role of brands in the market; 4) the small size of online education market.








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