ENTREPRENEURSHIP DEVELOPMENT THROUGH SMART COMMUNITY SPECIALIZATION: EU EXPERIENCE

Abstract

The article examines the main aspects of implementing the SMART specialization concept in Ukraine, in particular in the context of economic development after a full-scale military invasion. SMART specialization is an important tool for building sustainable cooperation between authorities at different levels and stakeholders, including entrepreneurs, universities, research institutions and civil society. In the context of the economic downturn caused by the war, the importance of a strategic approach to regional development through innovation and technology is growing. The dynamics of the volume of products sold in Ukraine in recent years, in particular in the field of small business and individual entrepreneurs, is analyzed, which gives an idea of economic activity and the potential for the implementation of SMART specializations. In particular, it examines how the war affected economic activity in various sectors (agriculture, construction, mechanical engineering, professional activities), and also identifies the most successful regions for the development of new business models. In all areas of economic activity, by 2021, the volume of sales of individual entrepreneurs' products had a tendency to grow. In agriculture, this indicator increased by 3.9 times, in mechanical engineering - by 4.7 times (including the production of computers, electronic and optical products - by 5.2 times), in construction - by 6.9 times, in professional, scientific and technical activities - by 7 times. In 2022, a crisis decline in the economic activity of small enterprises was expected. This trend is observed in all regions of Ukraine. The EU experience in implementing SMART specializations, in particular in Germany, Spain, Sweden and other countries, is reviewed, and strategies for adapting these approaches in Ukraine are proposed. Special attention is paid to business communities, which are an important driver of innovation processes within the framework of this strategy. Conclusions are drawn about the need to integrate innovations, support small and medium-sized businesses, and create a favorable regulatory environment for the implementation of SMART specializations at the regional and local levels.