Peculiarities of the IT clusters development in Ukraine: problems and prospects for growth

Abstract

The strategic importance of IT in today's innovation and information technology-oriented economy cannot be overstated. Its active introduction is crucial to promote economic development, increase civic engagement, and strengthen the national economy's competitive position. The development of information technologies not only catalyzes the transition from extensive to intensive production growth but also brings about significant changes in labor organization and management technologies. This article is dedicated to a comprehensive study of the economic processes in Ukraine's IT sector, with a particular focus on IT clusters. The primary objective is to determine the current state of these clusters and outline the directions of their future development. The article describes the key factors that limit the competitiveness of the Ukrainian IT sector and outlines ways to overcome them. The characteristics of IT cluster development in Ukraine are studied. The dynamics of IT exports are analyzed. The activities of the top 25 IT companies in Ukraine are characterized. The study shows that Ukraine's IT sector has demonstrated impressive resilience and adaptability during the war, successfully responding to digitalization and cybersecurity needs despite serious challenges such as the migration of professionals and changes in professional life. Key factors contributing to the development of IT clusters in Ukraine are identified. The article establishes that the state of development of the country's relevant technologies, innovation ecosystem, and infrastructure is the primary driver of the Ukrainian IT sector development. The main activities of these clusters aimed at improving innovative products are outlined. After the war, IT clusters are expected to play a vital role in the country's economic recovery, using their experience to develop innovations and stimulate growth through international investment and integration into international markets. Keywords: ІТ cluster, ІТ sector, innovation, investment, competitiveness, entrepreneurship