DEVELOPMENT OF THE BUSINESS ECOSYSTEM OF AN URBAN REGION IN THE CONTEXT OF CONVERGENCE WITH EU

Abstract

ABSTRACT
Introduction. In modern conditions, certain urban regions of Ukraine are becoming centers of
economic activity, where businesses, institutions, organizations, the public, and government agencies
interact to create favorable conditions for sustainable development, effective resource utilization, and an
improved quality of life for the population. Convergence with the EU opens up new opportunities for the
development of business ecosystems in these regions, which include digital innovations and social
responsibility. Research helps to understand how integration processes and digitalization impact the
competitiveness of regions, their resilience, and their ability to adapt to changes in the global and local
environments, as well as which strategies can be applied to maximize the benefits of cooperation with the
EU.
Goal. The research focuses on the approaches to forming business ecosystems in urban regions of
Ukraine and determining the impact of digitalization and European integration on their development.

Achieving this goal involves a comprehensive approach to: identifying the elements of the business
ecosystem in urban regions and the key factors that promote or hinder their development; studying the
economic, social, digital, institutional, and environmental aspects of business ecosystem development;
and developing recommendations for optimizing digital, critical, and business infrastructure, as well as
policies to support entrepreneurship and participants in the business ecosystems of urban regions in the
context of convergence with the EU.
Methods. Utilized methods ensure a comprehensive approach to analyzing the complex processes
occurring in the business ecosystems of urban regions. This includes systematization and generalization
to understand the intricate nature of the business ecosystem, as well as systemic and structural analysis,
and modeling to evaluate the relationships and interactions among the elements of the business ecosystem
in urban regions of Ukraine, particularly in the context of digital transformations and convergence with
the EU.
Results. The study examines the substantive understanding of the concepts of ―ecosystem‖,
―business ecosystem‖, ―urban region‖, and ―convergence‖. It is demonstrated that an ecosystem
approach proves effective in analyzing innovative processes both in the economy and society. Any
organization that is part of a business ecosystem does not necessarily need to possess all resources; what
is essential is having partners who possess the necessary resources.
Factors creating competition among business ecosystems have been analyzed, and it has been
established that an innovative business ecosystem enables the economic interests of all stakeholders,
facilitating the formation and implementation of an innovation cycle within a specific urban region,
which can ultimately be scaled. The term ―urban region‖ refers to an area characterized by high
population density and active economic activity. The business ecosystem of an urban region is proposed
to be understood as a network of interconnected participants (businesses, organizations, research
institutions, investment funds, government institutions, non-governmental organizations, and other
stakeholders) who interact not only to create economic and social value but also to foster conditions for
innovative development in the region and ensure a high quality of life for the population.
The main elements have been identified, and the principles ensuring interaction among
participants in the business ecosystem within the spiral dynamics of urban region development have been
clarified. It has been proven that the business ecosystem of an urban region creates conditions for the
development and success of not only all participants but also the urban region in which it operates.
Conversely, the development and interaction of all participants within spiral dynamics contribute to the
growth of the business ecosystem.
In this context, the process of convergence with the EU may involve not only the harmonization of
legislation, support for investments in infrastructure development, and enhancement of competitiveness
but also glocal integration with specific EU member regions or countries. This means combining global
and local approaches in integration and cooperation processes. Glocalization, in turn, involves adapting
global ideas, standards, and technologies to local conditions and needs.
The research also identifies the advantages and challenges of digital technologies and
digitalization processes in the development of business ecosystems. An author’s vision of the main stages
for developing and implementing a strategy for the business ecosystem of an urban region has been
proposed, demonstrating that its formation and development should be based on economic, social, and
environmental components.
Conclusions. The successful development of a business ecosystem in an urban region requires
close interaction among its participants (business entities, government institutions, the public, etc.) and
involves the implementation of sustainable development principles to ensure long-term economic stability
and improve quality of life. The realization of this approach will strengthen Ukraine's convergence with
the EU, leading to further innovation, economic, digital, social, and environmental development, while
opening new opportunities for collaboration and adaptation to rapid changes in the global and local
environments.
Keywords: urban region, business ecosystem, development, convergence, digitization, digital
technologies, glocalization, strategic imperatives, artificial intelligence.