Modelling the process of assessing the smart potential of regions in the context of innovative development

Methods. The methodological foundation of the research is based on a systems approach that integrates the theoretical principles of the smart economy with practical tools for assessing regional potential. To construct the integrated smart index, a multidimensional approach was used for the selection of indicators, a data normalization method was applied to eliminate dimensionality, and the entropy method was employed to determine the weight coefficients of the indicators. The modeling part is based on economic and mathematical methods, in particular cluster analysis (k-means algorithm) to group regions by similar smart development profiles, as well as regression analysis to identify relationships between the level of smart potential and socio-economic development indicators. The proposed approach enables an objective quantitative assessment of smart potential and the development of practical recommendations for regional policy in the context of digital transformation. Results. A methodological toolkit has been developed, which includes the normalization of heterogeneous indicators, determination of weight coefficients using entropy analysis, and calculation of an integrated index. The procedure for calculating the index based on sub-indices for each block of smart potential has been formalized using mathematical formulas. The methodology incorporates cluster analysis to group regions based on the similarity of their smart profiles and regression models to determine the relationship between the level of smart potential and socio-economic development indicators. Novelty. The scientific novelty of the research lies in the formation of a multidimensional approach to assessment, which considers not only traditional financial and production indicators but also aspects of digital transformation. The methodological toolkit for assessing regional development has been improved by developing a formalized mathematical model. Practical value. The practical value of the results is due to the creation of a universal tool for comparative analysis of Ukrainian regions, which allows for objective ranking, identification of strengths and weaknesses of territories, and the formulation of well-grounded management decisions regarding investment priorities and programs for supporting innovative development. The proposed model is adapted to national characteristics of information support, which makes it practically applicable in the context of Ukraine.

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Publication Details

Journal
Economic Bulletin of Dnipro University of Technology
Published
2025-06-30
DOI
https://doi.org/10.33271/ebdut/90.195
Primary Topic
Socioeconomic and Demographic Analysis
Type
article
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article

Modelling the process of assessing the smart potential of regions in the context of innovative development

K. O Udachyna, K. D. Pidhorna, V. O Pidhornyi
Economic Bulletin of Dnipro University of Technology
Socioeconomic and Demographic Analysis
article

Modelling the process of assessing the smart potential of regions in the context of innovative development

K. O Udachyna, K. D. Pidhorna, V. O Pidhornyi
article en

Abstract

Methods. The methodological foundation of the research is based on a systems approach that integrates the theoretical principles of the smart economy with practical tools for assessing regional potential. To construct the integrated smart index, a multidimensional approach was used for the selection of indicators, a data normalization method was applied to eliminate dimensionality, and the entropy method was employed to determine the weight coefficients of the indicators. The modeling part is based on economic and mathematical methods, in particular cluster analysis (k-means algorithm) to group regions by similar smart development profiles, as well as regression analysis to identify relationships between the level of smart potential and socio-economic development indicators. The proposed approach enables an objective quantitative assessment of smart potential and the development of practical recommendations for regional policy in the context of digital transformation. Results. A methodological toolkit has been developed, which includes the normalization of heterogeneous indicators, determination of weight coefficients using entropy analysis, and calculation of an integrated index. The procedure for calculating the index based on sub-indices for each block of smart potential has been formalized using mathematical formulas. The methodology incorporates cluster analysis to group regions based on the similarity of their smart profiles and regression models to determine the relationship between the level of smart potential and socio-economic development indicators. Novelty. The scientific novelty of the research lies in the formation of a multidimensional approach to assessment, which considers not only traditional financial and production indicators but also aspects of digital transformation. The methodological toolkit for assessing regional development has been improved by developing a formalized mathematical model. Practical value. The practical value of the results is due to the creation of a universal tool for comparative analysis of Ukrainian regions, which allows for objective ranking, identification of strengths and weaknesses of territories, and the formulation of well-grounded management decisions regarding investment priorities and programs for supporting innovative development. The proposed model is adapted to national characteristics of information support, which makes it practically applicable in the context of Ukraine.

Economic Bulletin of Dnipro University of Technology(90)
Openalex Percentile: Top 75%
Socioeconomic and Demographic Analysis
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