Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the production of nootropic drugs such as piracetam and related racetam family compounds. Its structure supports the development of cognitive enhancers by serving as a building block for pyrrolidone derivatives. It is also employed in research settings for the preparation of biologically active molecules and heterocyclic compounds. Due to its functional groups, it participates in various organic transformations, making it valuable in medicinal chemistry and drug development.