FEATURES OF THE IMPACT OF THE KNOWLEDGE ECONOMY AND DIGITALIZATION ON COUNTRY DEVELOPMENT

Abstract

The article analyzes the knowledge economy as a strategic factor in the development of the national economy under the conditions of digitalization and globalization. Knowledge is an important resource that reflects a country's level of competitiveness, promotes the development of innovative processes, and facilitates integration into the global economic space. A comparative analysis of countries' development levels according to the Global Knowledge Economy Index in 2024 has been conducted. The main criteria for the analysis were the division of countries by geographical region: Europe, Asia, South and North America, Oceania, and Africa, as well as by knowledge economy levels: high, above average, average, below average, and low. The research sample included 141 countries, which demonstrates the reliability of the obtained results. The calculation of the Global Knowledge Economy Index was based on seven sectoral indices, namely: primary education; technical and vocational education and training; higher education; research, development, and innovation; information and communication technologies; economy; and enabling environment. It was found that European and North American countries show the best knowledge economy index results. Ukraine ranks at an average level in this rating, on par with neighboring countries such as Poland, Hungary, Lithuania, as well as other European countries like Spain, Italy, Lithuania, and Greece. The analysis revealed that several countries show an uneven development of knowledge economy indicators, highlighting the need for targeted support of knowledge-oriented and research sectors. To visually present the elements of Ukraine's Global Knowledge Economy Index (GKI), a radar chart was built, as it effectively illustrates the balance of all elements and identifies areas of lag. Based on the analysis of Ukraine's knowledge economy indicators, the country's strong positions were identified: a high level of primary education and the development of information and communication technologies. At the same time, weak areas include the low level of research, development, and innovation, which require proper state support and reforms. The formation of an effective knowledge economy development strategy is considered one of the key ways to enhance Ukraine’s competitiveness and ensure sustainable economic growth amid global transformations.