NETWORK ECONOMY AND SUSTAINABLE REGIONAL DEVELOPMENT: INTERCONNECTION AND OPPORTUNITIES

The modern economy is currently transitioning to a network-based mode of functioning, which is manifested through the active use of digital platforms, the expansion of connections between businesses, the integration of business processes into global value chains, the development of various associations, and the strengthening of cooperation between regions. Thus, the article examines the features of the network economy's functioning and its impact on sustainable regional development through the lens of interconnections and opportunities. Within the study, attention is drawn to the fact that the network economy model remains open to global economic processes and international cooperation. This provides grounds for considering it as a form of economic relations with a high level of interconnectedness between businesses, consumers, government structures, and other market participants. Attention is drawn to the fact that the key characteristics and factors determining the development of the network economy are digitalization, networking, globalization, decentralization, and resource sharing. It has been proven that digitalization involves the active use of online platforms, cloud technologies, blockchain, and big data, which optimize core business processes. It has been stated that networking is the expansion of horizontal and vertical connections between economic entities, enhancing their flexibility and facilitating rapid adaptation to changes. Attention is drawn to the fact that globalization is the integration of local markets into international value chains, enabling the swift exchange of resources, knowledge, and innovations. It has been stated that decentralization reduces the influence of traditional hierarchical structures in business due to the development of self-regulating networks. It has been proven that resource sharing is the expansion of the sharing economy, which is based on digital platforms such as Uber, Airbnb, BlaBlaCar, and others. The study results emphasize that the network economy is a key direction in the transformation of modern economic management, ensuring effective interaction between economic agents, the integration of innovative technologies, and increased adaptability of regional economic systems to the challenges of the global environment.