OPPORTUNITIES FOR THE INTEGRATION OF THE UKRAINE IN THE CONTEXT OF DIGITALISATION - Scientific conference
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Рік заснування видання - 2014

OPPORTUNITIES FOR THE INTEGRATION OF THE UKRAINE IN THE CONTEXT OF DIGITALISATION

15.11.2024 19:47

[1. Economic sciences]

Author: Olena Lytvynenko, PhD in Economics, Associate Professor of the Department of Economics and Business, State Biotechnology University; Daria Medkova, student of the specialty «International economic relations»


ORCID 0000-0002-8360-4461  Olena Lytvynenko

In the context of digitalisation, the success of countries is contingent upon the advancement of a knowledge-based society. The development of digital technologies serves as a pivotal driver for accelerating economic and social growth and integration at the national level. The information sphere of a state exerts a significant influence on the country's economic and innovation potential, which in turn has a substantial impact on other areas, international competitiveness, and the quality of life of citizens.

The necessity and characteristics of the digital transformation of society and Ukraine's integration into the EU digital space have been examined by Ukrainian scientists, including Dankulynets V.V. [4] and Kozar Y.V. [4]. The works of Lytvynenko O.D. [2], Romaniuk S.V. [4], Rosul Y.Y. [4], Todoshchuk A.V. [3], and Schleifer M.B. [3] have also contributed to this field of study.

In its early years of statehood, Ukraine made a formal declaration of its intention to integrate into the European Community. The digital transformation of Ukrainian society was facilitated through the implementation of a plethora of programs. The enactment of legislative initiatives pertaining to the country's digital development, the establishment of entities such as the Committee on Digital Transformation (2018) and the Ministry of Digital Transformation of Ukraine (2019), and the ratification of the Order of the Cabinet of Ministers of Ukraine «Approval of the List of Indicators for the Digital Economy and Society Index (DESI)» (2023) and the granting of Ukraine's EU candidate status represent significant milestones in the country's digital transformation and development, as well as an enhancement of its digital resilience in the post-war period.

The necessity for digital development and the increasing impact of European and global trends are reflected in the growth of financial support for Ukraine's digital transformation. The United24 Recovery Plan for Ukraine will facilitate the digital reconstruction and development of the country through a number of activities and projects funded by Western partners, the implementation of public-private partnership mechanisms, and the utilisation of state budget funds [1]. Ukraine's participation in digital global gateway initiatives will facilitate the establishment of a unified digital market with the EU, thereby opening up new digital and economic opportunities for Ukraine.

The integration of digital technologies in enterprises is a process that is currently underway in EU countries, with varying degrees of implementation depending on the size of the company, sector, and member state [2]. The implementation of an effective EU e-government system has the potential to positively impact the majority of economic sectors, facilitating the simplification and acceleration of various procedures. In order to fully leverage the extensive digital capabilities of EU countries, it is essential for governments to develop a comprehensive strategy for the advancement of the digital economy within the context of national digitalisation initiatives, the formation of an internal IT market, and the cultivation of consumer demand for digital technologies [3].

The Ukrainian IT industry has considerable experience in the development of software products in accordance with the most advanced technological concepts, including the Internet of Things, Big Data, Cloud Computing, Blockchain, and Artificial Intelligence [4]. The exploitation of the IT industry's potential may serve as the foundation for the advancement of a competitive digital economy in Ukraine. This entails the incorporation of digital technologies and competencies into industrial and other sectors. Information technology companies and software developers are pivotal partners and resources for the country's digital transformation, which will facilitate the export of technology to EU and the retention of information technology professionals in Ukraine. However, the ongoing conflict in Ukraine has introduced a number of challenges for domestic IT companies, including difficulties in maintaining a stable operational environment, which has led to concerns among potential customers and slowed the growth of IT exports. 

Ukraine has considerable potential in the field of digital technologies and has already made significant progress in the digitalisation of public services. Nevertheless, in order to consolidate its achievements in this domain and bolster the export potential of the IT industry, the country must enhance its digital infrastructure, which is currently experiencing the ramifications of the armed conflict, including power outages and security concerns.

It is therefore evident that the digital transformation of Ukrainian society and the integration of Ukraine's economy into the European digital space are essential to strengthening its economic competitiveness. Despite the European Union's support for Ukraine in this process, the war has had a considerable impact on the development of the IT industry, slowing its growth. It is unlikely that the expected volume of exports of IT services will be able to meet basic economic targets without active integration into the European market. In order to improve Ukraine's export capabilities, it is necessary to accelerate its inclusion in the EU's digital single market and adapt to the new challenges that arise from military and economic conditions.

References

1. План відновлення України United24. URL : https://recovery.gov.ua/.

2. Литвиненко О.Д. Особливості розвитку підприємства в умовах цифрової трансформації. Вісімдесят другі економіко-правові дискусії. Серія: соціальні та гуманітарні науки : матеріали Міжнародної мультидициплінарної наук. конф., 29-30 січня 2024 р., м. Львів, м. Ополе : ГО «Наукова спільнота», WSZIA, Польща. С. 15-17. URL : http://www.spilnota.net.ua/ua/article/id-4724.

3. Шлайфер М.Б., Тодощук А.В. Діджиталізація економіки України в умовах євроінтеграції. Економіка та суспільство, 2022. № 45. URL : https://economyandsociety.in.ua/index.php/jo urnal/issue/view/45.

4. Данкулинець В.В., Романюк С.В., Козар Ю.В., Росул Ю.Ю. Світова економіка в умовах впровадження цифрових технологій. Міжнародний науковий журнал «ОСВІТА І НАУКА», 2023. Вип. 2(35). С. 302-304.



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