Institutional space of sustainable development: Structure, motives, and conditions of development in Ukraine

The massive destructive processes and security challenges faced by Ukraine in defending its right to choose a development model have heightened the problem of defining institutional conditions for the structural transformation of the economy and aligning its parameters with sustainable development priorities. The purpose of this study was to model scenarios for the development of the business environment under various types of institutional structures and to determine the possibility of creating an institutional basis for Ukraine’s sustainable development in the face of global security challenges. The study was based on the conceptual framework of the institutional environment. The study identified institutional gaps in the business environment that distort the motivational foundation of Ukraine’s sustainable development concept and lead to the dominance of corrupt elements in the decisions and actions of economic actors. The consequences of the influence of extractive institutional factors on the choice of behaviour strategies by economic entities were systematised. The study characterised the differences in the impact of extractive and inclusive institutions on economic processes. Using the motivation vectors of business representatives, government authorities, and the public, scenarios for the development of the business environment were modelled, and their results were presented from the perspective of sustainable development goals. The concept of developing an environment of “entrepreneurial inclusivity” as an institutional basis for sustainable development was conceptualised, emphasising its role as a stimulator of proactive and effective innovative activities. The goals of developing innovative infrastructure were defined as a set of institutions of collective action that enable the reduction of risks in the innovative activities of enterprises and enhance their efficiency. The conditions under which the business community will be motivated to develop such institutions were identified. The role of civil organisations in institutional change processes and the development of institutions of collective action was emphasised. The findings of this study have practical significance for shaping the institutional mechanism to implement innovation and technological structural shifts in Ukraine’s economy in the context of sustainable development goals during its post-war revival