Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the production of nootropic drugs like piracetam and related racetam family compounds. It contributes to enhancing cognitive function by supporting the development of agents that modulate neurotransmitter systems. Also employed in research for developing neuroprotective agents and compounds targeting neurological disorders such as Alzheimer's and epilepsy. Its structure allows for easy modification, making it valuable in medicinal chemistry for designing bioactive molecules.