DEVELOPMENT OF THE INNOVATION ECOSYSTEM IN THE CONTEXT OF DIGITAL TRANSFORMATION

Abstract

The article explores the pivotal role of digitalization and innovation in the growth and competitiveness of national economies. Given the rapid evolution of digital technologies, understanding their impact on economic development is critical. This is especially relevant for Ukraine, where the high level of technical education could significantly propel the country's innovative capacities. However, despite this potential, there are substantial barriers that hinder the effective integration of digital advancements into the mainstream economy. The study aims to thoroughly analyze the theoretical frameworks and methodological approaches relevant to digital transformation. It contends that accelerating digital transformations is essential for leveraging Ukraine’s economic advantages on the global stage. Enhancing the domestic ecosystem of innovation through effective digital strategies could serve as a catalyst for economic growth and increased productivity. This paper employs a comprehensive approach that combines both quantitative and qualitative analysis methods. It includes a detailed review of existing scientific literature, classification of various types of innovations, and an assessment of the current state of digitalization within Ukraine. The study draws upon data sourced from leading analytical centers, as well as expert opinions in the field of digital technologies, to provide a nuanced understanding of the digital landscape. The findings indicate that the main challenges to digital transformation in Ukraine are primarily due to the inadequate integration of cutting-edge innovations within key economic sectors, limited governmental and private sector investments in R&D, and a lack of coordinated efforts between governmental bodies and the private sector. The research identifies critical gaps in policy and infrastructure that are impeding the country's ability to fully capitalize on its technical and creative potential. To address these issues, the paper recommends a series of policy initiatives aimed at increasing digital literacy across all levels of society, bolstering the infrastructure necessary for innovation, and encouraging stronger collaboration between the public and private sectors. These initiatives are designed to stimulate a more robust integration of advanced digital technologies into the Ukrainian economy, which is pivotal for its transformation into a dynamic and competitive market player.