DIGITALIZATION AS A TOOL FOR BUILDING INNOVATIVE BUSINESS DEVELOPMENT STRATEGIES IN EU COUNTRIES IN THE CONTEXT OF ADAPTING TO THE CRISIS TRENDS OF THE INTERNATIONAL ECONOMY

Abstract

The purpose of this article is to investigate the level of business digitalization in EU countries and their use of digital tools to develop innovative growth strategies in response to the crisis trends of the international economy. Methodology of research. The goal of the article was achieved by assessing the level of business digitalization in EU countries in 2023 based on indicators of digital technology usage and the infrastructure required for digitalization. By calculating the sum of all percentage ratios of these indicators, three quantiles were determined, and EU countries were grouped by their level of business digitalization (strong, moderate, weak). Findings. Countries with a strong level of digitalization include Sweden, Denmark, and Finland; countries with a moderate level include Croatia, Czech Republic, France, Luxembourg, Spain, Ireland, Estonia, Portugal, Austria, Germany, Malta, Slovenia, Italy, Belgium, and the Netherlands; countries with a low level include Bulgaria, Romania, Hungary, Greece, Poland, Latvia, Slovakia, Cyprus, and Lithuania. These countries implement digital solutions more slowly due to economic reasons and a lack of qualified personnel. It was determined that the digitalization process requires significant financial investments and substantial socio-economic changes, and only 13% of "new union" entities have a digital transformation strategy. Overall, the use of advanced digital technologies in enterprises in EU-27 countries, especially in small and medium-sized businesses, remains relatively low due to insufficient knowledge of their capabilities, financial barriers, and a lack of qualified personnel. Practical value. The implementation of new technologies requires both internal and external changes in business processes and changes in mentality. For the development of digital technologies in EU companies, investments in broadband networks and cybersecurity, as well as support for education and training in technological innovations, are crucial. Institutional support should include increasing the share of government spending on technological innovation production from GDP, developing practices that encourage innovation projects based on R&D, and investing in education.