Innovation Index Research Articles

PRIORITIES IN THE INNOVATIVE DEVELOPMENT OF UKRAINE ENTERPRISES AGAINST THE BACKGROUND OF THE MILITARY AGGRESSION OF THE RUSSIAN FEDERATION

The world economy changes its architecture. These changes are caused by the global technology revolution, which is associated with innovation processes. They cover a wide range of innovations: from the creation of decentralized systems based on trust (the blockchain) to open integrations of artificial intelligence (open AI ecosystem). Such processes configure new features of global markets and, more to the point, new players in these markets. Consequently, the most important task for Ukrainian business is to define clear development priorities related to innovations. This article examines the place of the Ukrainian economy in innovative global processes, identifies the main problems of entrepreneurship development under war conditions, and outlines priorities on the way to innovative reconstruction. An analysis of global innovation trends against the background of modern challenges was carried out on the basis of the Global Innovation Index (GII) for 2022, and the place of Ukraine in these processes was determined. The relationship between innovative contributions and innovative results is shown. The general entrepreneurial potential of Ukraine was determined, inclusive of the background of the russian war. It has been analyzed why the labor potential, which lost its place of work in connection with the armed hostilities of the aggressor, did not drift into the entrepreneurial private sector and did not join the ranks of the self-employed population. The innovative attitudes of Ukrainian entrepreneurship were analyzed and the industries that do not invest in technological innovation of production were identified. Arguments are presented why innovation can be the key to getting out of the crisis and a way to increase the competitiveness of enterprises in the domestic market, as well as promotion to foreign markets.

15 years of research on systemic risk across the globe: The evolution of the field and its drivers

This study examines the evolution of research on systemic risk during the 2007–2021 period, encompassing the Global Financial Crisis, European financial crisis, the outbreak of the COVID-19 and a number of other notable episodes undermining global financial stability. Our research goal is two-fold. First, based on Scopus-indexed publications, we identify the most impactful countries, institutions and scholars in the field, revealing a gradual but notable decline in the annual shares of publications on systemic risk associated with major advanced economies. This is offset by the increasing role of emerging markets, primarily, China, which makes this research field more competitive. Second, we are also concerned with the drivers of research on systemic risk in a vast sample of countries during the observation period. By applying a combination of variable selection techniques to 33 indicators that can potentially incentivize research on systemic risk, we find that low bank profitability as well as the general productivity of economic research are the most robust factors stimulating such publications. A higher country’s score on the global innovation index also spurs the research in this field. Conversely, countries with a higher power distance index, i.e favoring hierarchy and low risk-taking, tend to produce less research on systemic risk.

Theoretical and Methodological Provisions of the Index of Economic Stability of Countries

Each institution of a complex economic system, as a matter of fact, has its effect on reducing or increasing the country's economic stability. When we look at the global economy, these various institutions, under the influence of random or non-random phenomena, continuously change the nature of their interactions, changing also the level of global economic stability. Based on the importance of economic stability, it is necessary to highlight the factors in the sphere of influence of which economic stability has a positive effect on various infrastructures of countries. The article discusses the current problems of economic stability in the 25 countries of the European Union. To solve this complex problem, econometric methods are used; in particular, correlation-regression analysis was carried out with the help of the EViews software package. The obtained results show that in order to ensure economic stability in each country, it is necessary to pay attention to the levels of such indices as the index of global innovation, the index of economic complexity, the index of human potential development, the index of quality infrastructure. As a result of our calculations, it was found that in order to ensure the economic stability of each country of the European Union, it is necessary to implement reforms in various economic directions, which are presented in our research.

Examining the Interplay Between Innovation Index, Innovation Efficiency and Sustainability Index: A Cross-Group Analysis of G7 and E7 Countries

Purpose: The main purpose of this study is to examine the innovation, sustainability and innovation efficiencies of G7 and E7 countries and to address the relationship between them. The investigation focuses on exploring the potential impact of innovation productivity on the sustainability index in both developed and emerging economies, along with examining potential underlying factors influencing this relationship.
 Methodology: The research employs Data Envelopment Analysis (DEA) to assess the innovation efficiency. This analysis considers two innovation outputs set against five inputs. Statistical methods such as t-test and correlation analysis are also used to investigate the interplay between innovation efficiency and the sustainability.
 Findings: The findings of this study reveal interesting results. First, no significant difference is observed regarding innovation efficiency between G7 and E7 groups. For the G7 countries, there is a positive correlation between the sustainability index and innovation efficiency, suggesting that more efficient innovation is associated with sustainability. Contrarily, there is a negative correlation between these indices in E7 countries, implying that effective innovation can lower the sustainability index.
 Originality: This study contributes novel insights into the relationship between innovation and sustainability by considering the G7 and E7 countries. Although various countries are evaluated in the literature, no comparison has been made for these two groups. Also, the identification of opposing correlations between two indices in developed and emerging economies constitutes a significant contribution to the literature.

Türkiye'nin İhracata Dayalı Öncü Endüstrilerinde Ar-Ge ve İnovasyon Faaliyetleri: Gelecek Görüşleri İçin Bir Analiz

Purpose: Research and Development (R&D) and innovation activities critically impact an organization's development and competitive advantage. Although all industries have R&D and innovation activities, sectoral applications vary depending on readiness, investment opportunities, and organizational strategies. This study focuses on the automotive, textile, and main metal industries, with the highest export rates in Türkiye. This study aims to analyze R&D and innovation activities for the selected industries and provide practitioners with future insights.
 Methodology: Six different R&D and innovation indicators, i.e., current expenditure, personnel expenditures, trade investments, number of patent applications and number of R&D personnel, are considered for this study, and the GM (1,1) forecasting model is used to predict 2022-2030.
 Findings: As a result, although an increase in R&D and innovation activities in the automotive industry is expected, especially for each indicator, these values are limited for textile and main metal. It is realized that especially these two industries need more support. 
 Originality: Within the scope of this study, future insights and suggestions are given under digitalization and technology adoption, encouraging postgraduate studies of employees and higher education - industry collaborations, adopting R&D and innovation as a part of corporate culture, extending R&D and innovation incentives, supporting SMEs in R&D and innovation activities according to sectoral comparisons.

Innovation for Economic Growth: G7 vs E7

Purpose: The main objective of this research is to examine the impact of R&D expenditures and Global Innovation Index ranking on per capita income in E7 and G7 country groups.
 Methodology: Logistic regression model was used as the research method in the study. Stata 18 Data Analysis and Statistical Software Program was used in the analysis of the data. At the hand of Stata 18 Data Analysis and Statistical Software Program, regression analysis was used to estimate the possible and unknown effects of independent variables on the dependent variable. During the collection of the data used in the study, the archive scanning method, which is one of the qualitative research methods, was used. Archival reports and official records were also used in the study. 
 Findings: According to the research results, 83.56% of the model is explained by explanatory variables. With all other explanatory variables constant, a 1% increase in R&D expenditure will result in an increase of 0.5243% on GDP per capita. At the same time, this coefficient gives the flexibility of GDP per capita relative to R&D expenditure (%GDP). It is also found out that there is a positive relationship between GDP per capita and R&D expenditure and also, there is a negative relationship between GDP per capita-GII ranking. In this study, which deals with the innovation efficiency of the G7 countries and the E7 countries, and the effect of this performance on the GDP per capita, it is seen that the G7 countries spend more on innovation.
 Originality: It contributes to the literature as there is no other study in the literature that deals with per capita income, Global Innovation Index ranking and R&D expenditures comparatively between the G7 and E7.

Scouts’ Perspectives on Learning Experiences from a Pedagogical Innovation Scope

The Portuguese educational system aims at nurturing the holistic development of individuals and societal progress, surpassing the mere transmission of curriculum-based knowledge. While considerable advancements have been made, the need for ongoing innovation and equal educational opportunities remains evident, so that all children can have not only equal access to education, but also equal chances of success. This study investigates the largest Portuguese Scout movement, the CNE, exploring its organisational and pedagogical approaches, potentially applicable in formal education settings. This research surveyed participants aged 18–22, having completed approximately 12 years in the Scout movement. Data collection via focus group followed a semi-structured script, before a thorough content analysis was carried. Findings are organised as follows: Pedagogical organisation in learning cycles; Patrol system; The four stages of the Project Method; Characterization of the Scout Game and other learning process dimensions; Other competencies and values developed throughout the Scout learning course; and Comparisons with formal education contexts. The discourse of participants strongly suggests the Scout movement’s potential to inspire educational change, displaying consistent indicators of pedagogical innovation. The study advocates for further exploration of the CNE’s pedagogical functioning and its potential to serve as an inspiration for transformative changes in educational systems worldwide, as evidenced by the learners’ reflections.

R&D Expenditures-Innovation Relationship: Panel Data Analysis for Selected Countries

In the study, the concept of innovation, which is an important phenomenon in the process of economic growth and development, has been analyzed. This study aims to reveal the relationship between innovation, which is an important factor in economic development and growth, and research and development expenditures. In the study, an econometric model was established in order to determine the effect of research and development expenditures on innovation. In this model, the number of domestic patent applications was taken to represent innovation as the dependent variable. As independent variables; R&D expenditures and gross capital data were used. Panel data analysis was conducted for the sample of 35 countries, covering the period 2000-2019. The country sample was formed from among the top 49 countries whose data is available in the 2022 global innovation index ranking.
 In the analysis, it has been concluded that R&D expenditures have a significant positive effect on innovation. The gross capital variable, on the other hand, negatively affects the patent variable, which represents innovation. In the study, it was concluded that R&D expenditures have a significant positive effect on innovation. In order to increase innovation, countries should first allocate more resources to research and development activities.

Climate policy uncertainty and regional innovation performance: New empirical evidence from the United States

AbstractThis study aims to explore the empirical relationship between climate policy uncertainty (CPU) and regional innovation performance. The empirical analysis was conducted on 36 years of available data over the period 1987 to 2022 in the United States (US). By using an autoregressive distributed lag (ARDL) model for regression analysis, we examine the impact of CPU on two crucial indicators of innovation, namely, research and development (R&D) expenditures and patent applications (PTA). The empirical analysis reveals a significant negative effect of CPU on both R&D expenditures and PTA, suggesting that higher levels of climate uncertainty may hinder innovation activities in the regional context. A high CPU introduces hesitancy and risk aversion, impacting the allocation of resources, confidence in markets, and the willingness of businesses to pursue innovative endeavors. The negative effect remains consistent even after the inclusion of several control variables and robustness checks. The findings underscore the significance of a stable and supportive policy environment and economic conditions in promoting innovation. Overall, this research provides valuable empirical evidence on the interplay between CPU and innovation outcomes, offering insights for policymakers, businesses, and researchers seeking to navigate the complexities of climate‐related challenges and their impact on innovation. We did not find any study exploring the comparable impact of CPU on innovation.

Is worldwide patent protection converging? A cross-country index of patent protection strength 1990–2020

This paper introduces the International Patent Protection Strength (IPPS) index, a composite measure designed to assess global patent protection from the perspective of patent owners. Spanning 134 countries from 1990 to 2020, the IPPS index encompasses four dimensions—international mechanism, legislation, enforcement, and administration—constructed using standardized techniques recommended by the OECD. Results indicate global growth in patent protection strength until 2005, followed by a plateau with persistent disparities. Our findings also highlight the heterogeneity across countries and dimensions. In particular, variations in four dimensions are observed among countries at different income levels, with enforcement and administration being more pronounced, often due to resource constraints and a lack of willingness. Linear regression analysis demonstrates a positive and statistically significant relationship between the IPPS index and the Global Innovation Index (GII), affirming the correlation between patent protection strength and innovation. Sensitivity tests validate the robustness of country rankings across different weighting and aggregation methods. These results align with the viewpoint of some commentators who argue that a peaceful North-South dialogue requires introducing a development agenda that allows for affordable access, rather than solely extending intellectual property rights. The IPPS index serves as a valuable tool for policymakers, patent managers, and practitioners, enabling the identification of strengths and weaknesses in patent protection systems and informing targeted policy measures and strategic decision-making.

Assessment of Smart Technologies in Regional Innovation Systems: A Novel Methodological Approach to the Regionalisation of National Indicators

Innovation systems consist of different organisations from the quadruple helix, as well as the interactions and linkages between them. Smart technologies and ICT play a key role in the efficiency of systems. At the same time, regional scale is considered crucial for studying innovation in systems. However, the lack of many important data at the regional level compounds the efforts to study them. The paper proposes a novel methodological approach to the regionalisation of national-level indicators in order to address this issue. This is based on the model fit approach, using regressions to “regionalise” national-level indicators based on similar indicators that are available. The approach is tested on the data for Greek NUTS 2 regions and produces regional-level estimates for four innovation indicators, based on four available indicators that are found to be strongly correlated to them. However, the same approach can be used for any EU country or the whole of the EU. The results, their prospects for future research, and potential applications are considered. Overall, the availability of regional-level indicators is considered crucial for the formulation of impactful development policies.

Technology mapping of direct seawater electrolysis through patent analysis

In recent years, climate change has become more intense for society, and to mitigate this scenario, renewable energy sources have increased their installed capacity. In this context, green hydrogen, which can be obtained through water electrolysis, is considered one of the main alternatives to enable the replacement of fossil energy sources, acting as an energy vector to balance supply and demand for renewable energy. This study aims to mapping trends in direct seawater electrolysis technology by analyzing patents retrieved from the Derwent Innovations Index database between 1963 and 2022. As a result, 138 patent documents were identified and the analysis revealed an increase in patenting between 2016 and 2021 leading by China, South Korea, Japan, the United States, and the United Kingdom. The analysis also showed a trend towards research and development for electrocatalysts for direct seawater electrolysis in alkaline media, using materials not belonging to the platinum group metals.

Revolutionizing finance: The synergy of fintech, digital adoption, and innovation

Amidst the transformative digital age, characterized by groundbreaking innovations and digital integration, this study makes an attempt to explore the multipronged connection between innovation, digital adoption, and fintech. The study employs novel and comprehensive indices, such as the Global Innovation Index, Digital Adoption Index, and the Global FinTech Index to provide a deeper understanding of the intricate relationship between these variables. Through robust exploratory data analysis (EDA), Principal Component Analysis (PCA), and log-linear cross-sectional regressions, the study identifies a strong association of these variables with the income and geographical positioning of the countries and that many themes of digital adoption and innovation are highly complementing in nature. The study also uncovers the bidirectional causality between innovation and digital adoption. However, the linkage of fintech development with these dimensions is less pronounced, particularly when accounting for control variables. Collectively, this research highlights the complexity of these associations in the financial ecosystem, emphasizing their significance for policymaking and fostering economic growth via innovation-driven fintech integration.

ОЦІНКА ІННОВАЦІЙНОГО ПОТЕНЦІАЛУ УКРАЇНИ В КОНТЕКСТІ СВІТОВИХ РЕЙТИНГІВ

The innovative potential of Ukraine was evaluated in the context of world ratings, in particular according to the Global Innovation Index, the Bloomberg Innovation Index and the Summary Innovation Index. The place of Ukraine among other countries of the world in terms of the level of innovative development has been determined. In the Global Innovation Index in 2021, Ukraine was in 49th place, in the Bloomberg Innovation Index – in 58th place, in the Innovation Index of the Summary Innovation Index – in 34th place. According to the results of the ratings, such countries as Switzerland, USA, Sweden, South Korea, Great Britain, Finland, and Germany occupy the leading positions. The position of Ukraine in international rankings before the full-scale invasion of Russia on the territory of Ukraine indicates a rather unstable competitive position and the absence of an active policy in support of innovative activities and lack of effective mechanisms for introducing innovations and further commercialization. And the war only deepened and exacerbated the existing problems and significantly worsened the image of our state on the international arena in the context of its innovative development. In such difficult conditions, it is already important to use the best world experience and practices of the European Union in the formation of state policy regarding the development of innovations, including finding ways to increase financial support for innovative development from the state. The implementation of effective state regulation through the mechanisms of stimulating and supporting innovations, as the main driving force for increasing competitiveness, establishing cooperation between the state, society and business, creating a favorable institutional environment for the development of science, scientific developments and research should be a priority vector of Ukraine despite all the difficulties associated with war. The creation of human resources support mechanisms, in which Ukrainian scientists could implement their innovative ideas and developments in Ukraine, and not abroad, will also contribute to the increase of innovation potential.

Futurology of Sustainable Environmental Reporting Models Considering Innovation Indicators

Objective: The primary objective of this research was to present a futurology model for sustainable environmental reporting, considering innovation indicators. Methodology: The present study was applied and mixed-method (qualitative-quantitative) in terms of purpose. The population included experts (accountants, auditors, and university professors), selected through purposive sampling; 11 individuals were chosen for the qualitative sample. The quantitative population included all accountants and auditors active in the country's official accountants association, from which 384 individuals were randomly selected using Cochran's formula. The qualitative tool was semi-structured interviews, and the quantitative tool was a researcher-made questionnaire based on the indicators identified in the qualitative section. The validity of the research instruments was confirmed through content validity, and the reliability was established using Cronbach's alpha. Data were analyzed using structural equation modeling in SPSS and AMOS software. Findings: The results indicated that environmental standards, with a coefficient of .908, had the highest correlation with sustainable environmental reporting, whereas green culture, with a coefficient of .192, had the lowest correlation. Additionally, the results of the second-order measurement model showed that intervening conditions, with a coefficient of .916, and causal conditions, with a coefficient of .529, had the highest correlation with the innovation-based model of sustainable environmental reporting. Conclusion: The futurology model of sustainable environmental reporting, considering innovation indicators, demonstrated a good fit; therefore, planners can contribute to the development of organizational goals towards environmental sustainability.

INNOVATION METRICS FOR THE 21ST CENTURY: AN INNOVATIONOLOGY-BASED COMPREHENSIVE, MULTIDIMENSIONAL FRAMEWORK

Innovation has become a fundamental driver of economic progress, social well-being, and environmental sustainability in the 21st century. As organizations and policymakers grapple with the complexities of fostering and scaling transformative innovations, the need for robust, multidimensional approaches to measuring innovation performance has become increasingly critical. This article presents a comprehensive innovation metrics framework that is grounded in the emerging field of Innovationology, a transdisciplinary science developed by the author for understanding the multilevel, systemic, and contextual nature of innovation processes and outcomes. Drawing on the Innovationology perspective, the proposed framework transcends traditional financial and output-based measures to capture the intangible, organizational, ecosystem, societal, and sustainability-oriented determinants of innovation success. This multidimensional approach empowers global stakeholders to navigate the evolving innovation landscape, make informed decisions, and unlock the transformative potential of innovation for sustainable progress. Moreover, the article critically examines the limitations of conventional national and global innovation indices, such as the Global Innovation Index (GII) and the Bloomberg Innovation Index, which have long been the primary tools for benchmarking and comparing innovation performance across countries. Recognizing the shortcomings of these static, input-output-oriented models, this study proposes alternative frameworks that better capture the multidimensional, contextual, and systemic nature of innovation performance, drawing on the theoretical foundations of Innovationology. By integrating a diverse set of quantitative and qualitative indicators across multiple levels of analysis, this Innovationologybased innovation metrics framework empowers organizations, policymakers, and innovation ecosystem members to foster a more holistic understanding of their innovation capabilities, identify areas for improvement, and align their innovation efforts with the pressing challenges of the 21st century, ultimately contributing to the realization of the United Nations Sustainable Development Goals.

CHINA'S ROLE IN MODERN WORLD POLITICS

The article examines the role of China in modern world politics. China's share in the world economy in 2022 is analyzed. The key factors that contributed to the country's growth are identified. The dynamics of China's GDP growth in 2010-2022 is studied. China's place in the global competitiveness ranking for 2021-2022 is substantiated. The inflow of FDI is analyzed, which is cyclical in nature, since investments are a direct indicator of crises. It is noted that China's economic expansion is expanding and its influence in the world is increasing due to the formation of dependence on China as both an exporter and an importer. The data of the Global Innovation Index report, where China is among the 20 most innovative countries in the world, are substantiated. The foreign policy of the People's Republic of China is studied and its basic principles are determined. It is substantiated that China has a strong economy and a strong competitive position in the world economy, which allows China to position itself as one of the world leaders in the international arena. The economic power of China is determined. Xi Jinping's foreign policy is substantiated. It is revealed that over the years, China has made significant progress in transforming into a dynamic, knowledge-based economy and has managed to introduce new rules to cope with the governance challenges posed by the onset of the currency crisis, pandemic and the 2022 crisis. It is investigated that China currently accounts for almost a third of world exports and imports. The role of China in world politics is studied on the example of its position on the war in Ukraine and relations with Russia. China's place in the world ranking of countries according to the Innovation Index for 2020-2022 is studied. It is noted that in its foreign policy, China adheres to five basic principles, in particular: mutual respect for territorial integrity and sovereignty, non-aggression, non-interference in the internal affairs of another country, equality and mutual benefit, and peaceful coexistence. The dynamics of Russian exports to China is analyzed.

Development of Science in Conjunction with Economic Growth: Global Trends and Patterns

The formation of artificial communities within the framework of various types of mathematical and computer modeling, primarily agent-based, requires confident knowledge about the degree and nature of the interaction of the simulated agents, components and elements of the system being studied. The work reveals patterns of influence of scientific and innovation indicators on the level of the economy in countries around the world. Based on measuring the level of correlations between the publication activity of the countries of the world, the per capita level of R&D expenditures, patent activity and the number of researchers with the level of their economy relative to the population, it is shown that the indicators of the conjugation of the scientific and innovation sphere of countries and their level are quite high, in general intensified from 2010 to 2022. Since 2010, the ratio of the levels of mutual dependence of indicators of scientific and inventive activity and the relative values of national economies has changed; among other indicators, the highest level of correlation in 2022 is characterized by publication activity. The level of interconnection has largely increased due to the sharp intensification of the level of scientific development of rich oil and gas producing countries. Considering Russia’s place in global trends in scientific development, the author concludes that it is advisable to increase funding for scientific research in Russia while maintaining the course of supporting the productivity of fundamental science.

Innovation activities in the service sector across EU states: Similarities or differences?

Until 2005, service sector innovation had been a far less popular area of scholarly interest than studies on the industrial sector, the publication in 2005 of the methodological guidelines known as the Oslo Manual, in which it was noted that in addition to technological advancements in the economy, non-technological innovations might also be pursued in economic practice. Since then, although the popularity and dynamics of dedicated research have successively increased, this field of inquiry has not yet been sufficiently explored. Therefore, the aim of this study was to identify and assess the degree of homogeneity among EU countries in terms of innovation activity in the service sector. The hypothesis adopted for this study stated that there are countries within the EU that can be divided into clusters with respect to service sector innovation activity. Bearing in mind the objective and seeking to verify the hypothesis, this research used a critical review of literature, indicator-oriented analysis as well as quantitative statistical methods, among others, while relying on the most up-to-date data from the Eurostat database on innovation activity (as of 5.07.2022). The objective was accomplished using fifteen indicators which describe the effects of innovation activity, which were classified into four groups: innovation activity, types of implemented innovations, types of product innovation, and types of business process innovation. The research proceeded in three stages: identification of groups (clusters) in the area of the surveyed European countries which demonstrated the homogeneity of analysed indicators using Ward’s agglomerative clustering method; identification of significant differences between the defined groups for each indicator carried out, using Student's t-test; an assessment of the degree of homogeneity in the scope of the surveyed EU countries with respect to innovation activity in the service sector by means of the methods outlined above. On the basis of the conducted investigations and the adopted methodology, it may be concluded, first, that the service sectors of the surveyed EU countries can be divided into three homogeneous groups in terms of innovation activity. Second, the similarity within each group was confirmed by Levene’s test, the results of which demonstrated homogeneity of variance for thirteen out of the fifteen analysed indicators. Thirdly, statistical analysis of the findings made it possible to identify significant differences between the defined groups of countries, with the exception of country clusters I and II with respect to three product innovation indicators, as well as country groups II and III relative to three business process innovation indicators, where no significant differences occurred. The conclusions from the study warrant confirmation of the baseline hypothesis, which assumed that the surveyed EU countries could be divided into clusters in terms of service sector innovation activity. The research and the analyses indicated that a homogeneous division of the surveyed EU countries into individual groups in terms of innovative activities in the service sector might offer a point of departure for further, in-depth analysis of the issues addressed in the study. Some of the compelling directions for future investigations include the determination of homogeneity and differences across the industries of the sector in question, as well as the creation of a ranking of countries in line with the analysed indicators. Approaching the issue in this manner will enable a detailed assessment of the innovation activity in the service sector and its internal structures, as well as provide grounds for validating the cluster division presented in this paper.

ЦИФРОВІ ІННОВАЦІЇ В АГРАРНОМУ СЕКТОРІ: АНАЛІЗ ЕФЕКТИВНОСТІ ТА ПЕРСПЕКТИВИ ВПРОВАДЖЕННЯ В УКРАЇНІ

The article examines digital innovations in Ukraine's agricultural sector and their impact on the effi ciency of agricultural production. It is noted that digital technologies have permeated almost all areas of life, including the agricultural sector. The conditions that contribute to the development of the innovative potential of agricultural enterprises are identifi ed, including computer literacy, government support programs for digital strategies, fi nancial capacity, and more. Key technologies such as precision farming, process automation, the use of drones and satellite monitoring, as well as data management systems, are examined. The impact of these technologies on increasing crop yields, optimizing resource use, and reducing costs is analyzed. Barriers to the implementation of digital innovations, such as high implementation costs, insuffi cient funding, and lack of appropriate infrastructure, are identifi ed. The article also explores opportunities to overcome these barriers through increased investment, collaboration between the public and private sectors, and the development of digital literacy among farmers. Innovative solutions being implemented in the agricultural sector are reviewed, including comprehensive machinery management, work accounting, fuel management systems, and precision and smart farming. The advantages and disadvantages of digital innovations in Ukraine's agricultural sector are presented. The categories of foreign direct investment in Ukraine's agricultural sector and the main aspects of digital innovations are described. Ukraine's innovation indicators are analyzed in comparison to global averages, and Ukraine's position in various international rankings is identifi ed. The article outlines the prospects for further development of digital innovations in Ukraine's agricultural sector and their signifi cance for ensuring sustainable agricultural development in the face of global changes. It is emphasized that the digital transformation of the agricultural sector is essential for improving the competitiveness and effi ciency of Ukrainian agriculture.