SMART CITY AS A DRIVER OF ECONOMIC GROWTH AND INNOVATIVE DEVELOPMENT IN UKRAINE

Abstract

The digital transformation of Ukrainian cities, especially in post-war reconstruction, is becoming a key factor in ensuring economic growth and innovative development.  In this context, the smart city concept emerges as a strategic response to the need for sustainable, inclusive, and technology-driven urban revitalization. This study aims to substantiate the smart city concept as an effective mechanism for the reconstruction and modernization of the Ukrainian economy, as well as to identify the potential benefits and challenges of its implementation.  The study is based on an interdisciplinary methodology that includes systems analysis to conceptualize urban transformation, comparative evaluation of international smart city practices, case study analysis of pilot projects in Estonia, the Netherlands, and Spain, as well as statistical review of Ukraine’s infrastructure damage and demographic shifts. The findings of the research reveal that smart cities can play a pivotal role in economic recovery by optimizing resource management, integrating technological platforms for citizen engagement, and reinforcing governance transparency. Special attention is given to the role of artificial intelligence, big data analytics, and civic technologies in building resilient urban ecosystems that support both economic innovation and social reintegration. The results also highlight the necessity of tailoring smart city models to Ukraine’s unique socio-political context, taking into account war-related damages, migration patterns, and the decentralization of public administration. The results indicate that a comprehensive approach to implementing smart technologies will not only effectively restore damaged infrastructure but also create new economic opportunities, attract investments, and improve the quality of life for the population. A survey of high school students revealed their deep understanding of the "Smart City" concept, their associations with convenience and technology, and their awareness of key challenges - funding and the impact of the war. The practical value of the study lies in developing recommendations for governmental and local authorities regarding the formation of state policy in smart city development, which will contribute to increasing Ukraine's investment attractiveness and economic security.