Innovative aspects of cluster initiatives in the context of digitalization of Ukraine’s economy

The development of a country is reflected in the improvement of its business environment driven by innovations. Ensuring a high level of innovation contributes to maintaining the country’s competitive positions and that of its business environment both domestically and internationally. Innovative activities are crucial for the development and competitiveness of national businesses in both domestic and international market conditions, influencing a majority of transformative processes in business and the country as a whole. However, innovation development occurs amidst crisis situations, which act as stimuli for action and create new opportunities to overcome negative circumstances. Ukraine, not yet fully recovered from the COVID-19 crisis, faces new challenges such as the war with Russia, exacerbating the already unstable business situation in the country. However, these situations reveal threats and opportunities, particularly in business innovation. These opportunities, if effectively realized, could pave a new path for Ukraine’s development. However, international support and government assistance are necessary for this. The main goal of this research is to conduct a comprehensive financial and economic assessment of innovation activity in Ukraine.It is worth noting that the presence of the so-called “economic front” significantly influences high expectations regarding the country’s “modernization”. However, for some sectors, such innovative measures are currently impractical due to the substantial capital investment and need for highly skilledprofessionals. On one hand, export-oriented enterprises continue actively implementing and utilizing innovations. On the other hand, many enterprises have suffered significant losses in production, sales, and exports, forcing them to take various measures to survive in challenging crisis conditions.It is evident that without a substantial increase in innovation activity among enterprises, it is impossible to plan and implement the necessary recovery of the national business sector at the macro level.