INNOVATIVE MECHANISMS FOR THE DEVELOPMENT OF THE DIGITAL ECONOMY

The rapid development of digital technologies has significantly transformed modern economic systems and created new opportunities for sustainable economic growth. The concept of the digital economy was first introduced by Don Tapscott in his influential work The Digital Economy: Promise and Peril in the Age of Networked Intelligence, where the author emphasized the role of digital networks, information technologies, and innovative infrastructures in shaping a new economic paradigm. Today, the digital economy encompasses a wide range of advanced technologies such as Big Data analytics, cloud computing, blockchain, artificial intelligence, robotics, financial technologies (FinTech), and the Internet of Things. This study examines the theoretical foundations and innovative mechanisms that drive the development of the digital economy. Particular attention is given to the transformation of business models, the emergence of digital platforms, and the growing role of personalized digital services. The research highlights the shift from traditional economic systems toward digitally integrated economic environments where producers and consumers interact directly through digital infrastructures. The study also analyzes the role of innovation in economic development based on the theoretical framework proposed by Joseph Schumpeter, who emphasized that innovation is the key driver of economic progress and entrepreneurial development. In the context of the digital economy, innovation manifests itself through new digital business models, technological integration, and the transformation of value creation processes. Furthermore, the paper discusses the importance of financial and institutional support mechanisms for small and medium-sized enterprises (SMEs), which often face limitations in financing innovative activities. The findings suggest that the effective development of the digital economy requires coordinated policies, technological infrastructure development, and institutional support mechanisms that encourage innovation and digital transformation across all sectors of the economy.Overall, the research concludes that the digital economy serves as a powerful driver of economic modernization, productivity growth, and global competitiveness.