THE ESSENCE OF DIGITAL ECONOMY AND INNOVATION APPROACH AS A CONSEQUENCE

All facets of society's economic life are now impacted by new digital technologies and creative business models, which have an effect on the economy's core and lead to qualitative structural changes.A digital economy, which is characterized by the active use of technical advancements and the distribution of distinctive electronic goods, thus arises as a subsystem of the traditional economy.The competitiveness of the nation is closely correlated with the level of development of the digital economy, so businesses and the government must pay particular attention to this sector's growth.Digitalization is being integrated into social processes; people's lives of achievement are becoming increasingly dependent on it; additionally, digital technology is being widely implemented in the operation of government organizations and institutions.However, there are both positive and negative aspects of technology advancements in the digital economy that affect our daily lives.The article discusses the essence of the digital economy, its determinants, and the results as consequences.