Assessment of the economic efficiency of smart cities implementation in Ukraine

Abstract

The article explores the implementation of the “smart city” concept in Ukraine, which is particularly relevant due to the need to optimize urban management, enhance transparency, and improve resource efficiency. It has been established that current challenges, including the war, significantly affect the feasibility of implementing innovative solutions due to infrastructure destruction, resource redirection toward humanitarian needs, and overall economic instability.

The study aims to analyze the potential of Ukrainian cities for integrating “smart city”elements, considering available resources, infrastructure conditions, and digitalization levels, and to develop recommendations for enhancing the effectiveness of such projects. The research employs systemic analysis methods to evaluate key urban management indicators and comparative analysis to identify differences between large and small cities.

The findings reveal that large Ukrainian cities such as Kyiv, Lviv, and Kharkiv are better prepared for implementing innovations due to partial infrastructure modernization and developed digital bases. Conversely, integration of “smart city” elements in medium and small cities is hindered by financial constraints, outdated technologies, and a lack of skilled personnel. It has been demonstrated that the war has exacerbated existing issues, particularly through infrastructure damage and the outflow of qualified professionals, complicating even basic modernization efforts.

The conclusions highlight the necessity of developing a unified national strategy aimed at advancing digitalization and modernizing urban infrastructure. It is recommended to strengthen coordination between government levels, attract international investments, and implement programs to improve digital literacy among citizens.

Future research should focus on examining models for urban infrastructure restoration using intelligent technologies, analyzing the long-term economic impact of “smart cities”, and adapting global practices to Ukrainian realities.