THE DIGITALIZATION AND SMART SPECIALIZATION IN REGIONAL ECONOMIC ECOSYSTEMS: INTEGRATING AI TECHNOLOGIES FOR SUSTAINABLE DEVELOPMENT
PDF

Keywords

public management
public policy
smart specialisation
international standards
region
regional development
digitalisation
regional economic ecosystem
artificial intelligence
digital maturity
sustainable development
innovation clusters
regional policy

How to Cite

Mykolaichuk, M., & Kusplіak I. (2025). THE DIGITALIZATION AND SMART SPECIALIZATION IN REGIONAL ECONOMIC ECOSYSTEMS: INTEGRATING AI TECHNOLOGIES FOR SUSTAINABLE DEVELOPMENT. Public Management and Policy, (12(16). https://doi.org/10.70651/3041-2498/2025.12.07

Abstract

The article examines digitalization and smart specialization as complementary mechanisms for transforming Ukraine’s regional economic ecosystems under technological instability and martial law. Smart specialization is considered “architectonics” of economic interaction, where local resources gain new significance through alignment with human capital, entrepreneurship, and technology, generating long-term structural development impulses. Institutional trust serves as a key channel for communication and innovation. Digitalization is not merely the digitization of services but a foundation for integration processes that create a new socio-economic experience and redefine the roles of government, business, and communities. The concept of digital ecology encompasses coordination of information flows, interaction speed, and accumulation of local knowledge, reducing developmental entropy and enabling controlled scenarios. Analysis of the legal framework for smart specialization shows that its effectiveness depends on alignment with informal practices, local initiative, and risk readiness. Under these conditions, a new type of collective entrepreneurship emerges, creating not only market niches but also communicative bridges between local and global spaces. Integration of artificial intelligence in regional governance enables early detection of systemic weaknesses and optimization of resources through predictive models and policy evaluation algorithms. The dynamics of the Regional Digitalization Index in Q1–Q2 2025 demonstrate uneven adaptation, reflecting local developmental specificity. During wartime, digitalization acts as a mechanism of social solidarity, supporting remote employment, internally displaced persons, and adaptation of services to limited resources. The symbiosis of digitalization and smart specialization creates adaptive and technologically resilient economic systems, where digitalization ensures rapid response and smart specialization ensures sensitivity to opportunities. This enables regions to overcome exogenous shocks and integrate into global innovation chains.

https://doi.org/10.70651/3041-2498/2025.12.07
PDF

References

1. Alfeo, A. L., Appio, F. P., Cimino, M. G. C. A., Lazzeri, A., Martini, A., & Vaglini, G. (2016). An adaptive stigmergy‑based system for evaluating technological indicator dynamics in the context of smart specialization. In Proceedings of the 5th International Conference on Pattern Recognition Applications and Methods (ICPRAM) (pp. 497–502). SciTePress. https://doi.org/10.5220/0005645204970502

2. Baranovskyi, M. O. (2020). Smart-spetsializatsiia yak instrument aktyvizatsii rozvytku rehioniv Ukrainy [Smart-specialization as a tool for activating regional development in Ukraine]. Scientific Bulletin of Kherson State University. Series: Geographical Sciences – Naukovyi visnyk Khersonskoho derzhavnoho universytetu. Seriia: Heohrafichni nauky, (13), 7–15. https://gj.journal.kspu.edu/index.php/gj/article/view/294 (in Ukrainian)

3. Brych, V. Ya., Putsenteylo, P. R., Humeniuk, O. O., & Hunko, S. I. (2021). Smart spetsializatsiia v systemi innovatsiinoho rozvytku terytorii [Smart specialization in the system of innovative territorial development]. Innovative Economy – Innovatsiina ekonomika, (7–8), 53–56. https://doi.org/10.37332/2309-1533.2021.7-8.8 (in Ukrainian)

4. Cabinet of Ministers of Ukraine. (2015). Pro zatverdzhennia poriadku rozroblennia Derzhavnoi stratehii rehionalnoho rozvytku Ukrainy i planu zakhodiv z yii realizatsii, a takozh provedennia monitorynhu ta otsinky rezultatyvnosti realizatsii zaznachenykh Stratehii i planu zakhodiv [On approval of the procedure for developing the State Strategy of Regional Development of Ukraine and the action plan for its implementation, as well as monitoring and evaluating the effectiveness of the Strategy and the action plan]. Resolution of the Cabinet of Ministers of Ukraine No. 931, 11 November (amended 14 November 2018). https://zakon.rada.gov.ua/laws/show/931-2015-п (in Ukrainian)

5. E-Governance. (2025). Tsyfrovizatsiia rehioniv i hromad: pershi vymiriuvannia 2025 roku [Digitalization of regions and communities: first measurements of 2025]. https://decentralization.gov.ua/news/19603 (in Ukrainian)

6. Emelianov, V. M., & Kozlova, L. V. (2019). Osoblyvosti realizatsii kontseptsii smart spetsializatsii v Ukraini [Features of smart-specialization implementation in Ukraine]. Public Administration and Regional Development – Derzhavne upravlinnia ta rehionalnyi rozvytok, (6), 777–801. https://doi.org/10.34132/pard2019.06.04 (in Ukrainian)

7. European Court of Auditors. (2025). Review 05/2025: Smart specialisation strategies in the EU. Luxembourg: European Court of Auditors. https://www.eca.europa.eu/ECAPublications/RV-2025-05/RV-2025-05_EN.pdf

8. Holodnytskyi, E. (2023). OECD zatverdyla vyznachennia AI, yake liazhe v osnovu EU AI Act [OECD approved AI definition underlying the EU AI Act]. IT Committee, Privacy Committee – Komitet z IT ta pryvacyi. https://iaa.international/publication/oecd-zatverdila-viznachennia-ai-iake-liazhe-v-osnovu-eu-ai-act (in Ukrainian)

9. Huk, K., & Zeynalov, A. (2022). Regional disparities and economic growth in Ukraine. arXiv preprint. arXiv:2211.05666. https://arxiv.org/abs/2211.05666

10. Ishchuk, S. O., & Sozanskyi, L. Y. (2021). Kryterii vyboru napriamiv smart spetsializatsii rehionu (na prykladi Kharkivskoi oblasti) [Criteria for selecting directions of smart specialization in a region (case of Kharkiv region)]. Regional Economics – Rehionalna ekonomika, (3), 46–56. https://re.gov.ua/re202103/re202103_046_IshchukSO,SozanskyyLY.pdf (in Ukrainian)

11. Kindzerski, Y. (2022). Postwar recovery of Ukraine’s industry: challenges and features of policy. Economic Analysis – Ekonomichnyi analiz, 3(2), 101–115. https://doi.org/10.35774/econa2022.02.101

12. Kraus, K. M., Kraus, N. M., & Shtepa, O. V. (2021). Industriya kh.0 i industriya 4.0 v umovakh tsyfrovoyi transformatsiyi ta innovatsiynoyi stratehiyi rozvytku natsionalnoyi ekonomiky [Industry X.0 and Industry 4.0 in the context of digital transformation and the innovation strategy of national economic development]. Effective Economy – Efektyvna ekonomika, (5). https://doi.org/10.32702/2307-2105-2021.5.91 (in Ukrainian)

13. Ministry of Digital Transformation of Ukraine. (2025). Indeks tsyfrovizatsii rehioniv ta hromad: rezultaty II kvartalu 2025 roku [Index of Digitalization of Regions and Communities: Results of Q2 2025]. https://decentralization.gov.ua/en/news/19925 (in Ukrainian)

14. Nagy, S., & Veresné Somosi, M. (2022). The relationship between social innovation and digital economy and society. Regional Statistics – Rehionalna statystyka, 12(2), 1–27. https://doi.org/10.15196/RS120202

15. Nosratabadi, S., Atobishi, T., & Hegedűs, S. (2023). Social Sustainability of Digital Transformation: Empirical Evidence from EU-27 Countries. Administrative Sciences, 13(5), 126. https://doi.org/10.3390/admsci13050126

16. Oleshko, A. A., Shatska, Z. Ya., & Rovniahin, O. V. (2022). Smart-spetsializatsiia Ukrainy v perspektyvi pisliavoiennoho vidnovlennia ekonomiky [Smart-specialization of Ukraine in the perspective of post-war economic recovery]. Effective Economy – Efektyvna ekonomika, (5). https://doi.org/10.32702/2307-2105-2022.5.9 (in Ukrainian)

17. Shvets, N. V., & Shevtsova, G. Z. (2020). Rozvytok pidpryiemnytstva ta yoho rol u realizatsii pidkhodu smart-spetsializatsii v Ukrain [Entrepreneurship development and its role in implementing the smart-specialization approach in Ukraine]. Economic Bulletin of Donbas – Ekonomichnyi visnyk Donbasu, 2(60), 53–66. https://nasplib.isofts.kiev.ua/handle/123456789/171611 (in Ukrainian)

18. Varuk, V. V. (2020). Vplyv stratehii rozvytku smart-spetsializatsii na riven dobrobutu meshkantsiv ob’iednanykh terytorialnykh hromad [The impact of smart-specialization development strategy on the welfare level of residents of united territorial communities]. Business-Inform, (7), 338–345. https://doi.org/10.32983/2222-4459-2020-7-338-345 (in Ukrainian)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Copyright (c) 2025 Mykola Mykolaichuk, Ihor Kusplіak