THE ROLE OF THE IT INDUSTRY IN SHAPING UKRAINE’S DIGITAL ECONOMY

Abstract

The issue of the role of the IT industry in the formation of the digital economy goes beyond the purely technological dimension - it encompasses the transformation of the entire economic system. Traditional industrial sectors are gradually losing their share in GDP and employment, while the role of sectors built on knowledge and digital technologies is growing. For Ukraine, this trend is becoming particularly relevant, since for a long time the basis of the economy was raw materials and industrial sectors. The article analyzes how the development of Ukraine’s IT industry contributes to the transition from an industrial to a digital economy and the structural shifts it entails. It examines changes in the structure of employment (the rapid increase in highly qualified IT professionals), value added (a growing share of IT in GDP and exports), investment policy (the revival of venture capital and state incentives for digital startups), and public governance (the implementation of e-services, transparency systems, and open data). The study presents examples of digital transformation in Ukraine: GovTech (the Diia portal and application, e-government), DefenseTech (wartime defense innovations and the creation of the Brave1 cluster), digital twins in reconstruction (the use of virtual models for urban planning), as well as the development of artificial intelligence and cybersecurity. The war is highlighted as a catalyst for digital solutions: despite wartime risks, the IT sector remains resilient, continues to generate foreign currency revenues, supports critical domains, and acts as an innovation multiplier in other sectors of the economy (agriculture, healthcare, industry, logistics). The study concludes that the IT industry plays a pivotal role in the structural modernization of Ukraine’s economy, laying the foundation for its post-war recovery on the principles of a digital economy. The role of the IT industry in shaping Ukraine's digital economy is decisive: it transforms the structure of the economy, stimulates the development of other industries, increases the country's resilience to challenges, and opens up new horizons for growth.