NOTABLE CHARACTERISTICS OF IT INDUSTRY DEVELOPMENT IN UKRAINE

Abstract

The article examines the unique aspects of IT industry development in Ukraine. It revealed that data management, telecommunications, cloud technologies, and fintech are prevalent segments within the Ukrainian IT services market. Highlighting the importance of harmonizing Ukrainian digital markets, the article observed that this endeavor would stimulate competition, improve online services at advantageous prices, diversify options, and ultimately drive increased investments, job creation, trade expansion, and socio-economic advancement. The Russian-Ukrainian war has disrupted the collaboration between European Union member states and Ukraine. Extensive evidence showcases that Ukraine's technology landscape, though smaller than that of EU member states, boasts a substantial reservoir of technical talent and entrepreneurs, resulting in numerous successful startups in recent years. Ukraine is recognized as a premier offshore engineering, and IT services destination within the EU, and any disturbances to economic activities in Ukraine directly impact corporations within the EU. The research findings conclude that Ukraine possesses considerable natural and acquired potential for innovative development. However, the overall positive achievements still need to be improved, predominantly concentrated within the IT technology sector. Given the European Union's current focus on the European Green Deal, Ukraine should prioritize the development of green technologies. While successful examples already exist, significant scaling efforts are required to advance this process. Before the full-scale invasion by Russia, the primary hindrance to companies' ability to innovate and compete in international markets was the institutional inadequacies within the Ukrainian state. Presently, the development of the high-tech sector in Ukraine will be influenced by two key factors in the short- and medium-term perspectives. On the one hand, the ongoing military conflict's destructive impact, encompassing the destruction of physical assets and the potential loss of human capital that emigrated due to the war, poses challenges. On the other hand, Ukraine's attainment of candidate status for EU membership holds promise, providing full access to the European Research Area and substantial EU funding for scientific projects.