Advantages and challenges of digitalization of the Ukrainian economy

Abstract

The essential characteristics, primary goals, and tasks of the Ukrainian economy's digitalization are studied. It has been established that digitization is the saturation of the physical world with electronic digital devices, means, and systems and the establishment of electronic communication exchange between them; in fact, the general, interaction of the virtual and physical is realized, that is, a cyber-physical space is created. The main goals of digitization are the digital transformation of the existing economy, the creation of new sectors of the economy, and the transformation of spheres of life into new, more efficient, and modern ones. This growth will only be possible if ideas, actions, initiatives, and plans related to digitization are integrated into national, regional, and sectoral development strategies and plans. The principles of the digital economy, which acquire features of an avant-garde character, are allocated, improved, and characterized. The types of digital economies, their four evolutions, the challenges of each stage of digitalization, and their impact on Ukraine's economy are indicated. It is well-founded that Ukraine has all the conditions for the so-called digital leap and the transition to a higher level of technological development, namely: ability to produce and use information, communication and digital technologies, and availability of professionals. This is evidenced by the statistics of real successes of Ukrainian IT companies on the international market, the purchase of appropriate equipment and technologies, and the dissemination of technologies among citizens and enterprises. This is evidenced by the gradual recovery of domestic demand for technologies, market "success stories" in various spheres of life and economy, creation of local representative offices of equipment manufacturers, distribution of high-tech equipment, a sufficient level of system integration of technical products and services - from design to complex implementation of various technologies, software, and hardware; а culture of creativity and the ability to generate ideas, as evidenced by high ratings. The key directions of the initial stage of the formation of the digital economy are clarified. Challenges in the field of digital economy and strengths and weaknesses are identified in digitalization. Proposals were made to strengthen the strengths and overcome the challenges of digitalizing the economy at the international and national levels. Keywords: digitalization; digital technologies; digital economy; digital society; digital development.