Widely used in the pharmaceutical industry as an intermediate for the synthesis of nootropic drugs, particularly racetam-class cognitive enhancers. It plays a key role in the production of piracetam and related derivatives, which are studied for their effects on memory, learning, and neuroprotection. The compound's structure allows for easy modification, making it valuable in developing new analogs with potential neurological benefits. It is also investigated for use in treatments of neurodegenerative conditions and cognitive impairments.