FINANCIAL AND CREDIT ACTIVITY: PROBLEMS OF THEORY AND PRACTICE Volume 1 (48), 2023 DOI: 10.55643/fcaptp.1.48.2023.3977 249 INNOVATIVE TRANSFORMATIONS OF UKRAINE'S ECONOMY IN THE CONTEXT OF GLOBALIZATION: THEORETICAL AND ANALYTICAL ASPECTS ABSTRACT The article substantiates the relevance of the innovative type of economy, which is dominant in all the leading countries of the world. Therefore, it is emphasized that innovations in the Ukrainian economy are the key to sustainable development. The pur- pose of this study is to identify and describe the existing innovative transformations in the Ukrainian economy and determine the prospects and ways of their development. During the study, a number of methods of theoretical knowledge were used, such as analysis, synthesis, concretization, and generalization. As a result of this scientific re- search, the following conclusions were made: Ukraine's place among all countries of the world in terms of innovation and globalization was determined, and the main reasons for the increase and decline of these indicators were found out; it is determined which areas of the Ukrainian economy were influenced by the process of digitalization, in par- ticular, banking, financial markets, advertising, business, IT; the current state and pro- spects for the development of renewable energy, IT-sphere, extraction of rare earth metals have been determined; The ways of development of innovations through coop- eration with developed countries have been determined. It is emphasized that the gov- ernment should promote entrepreneurship and learn from the experience of Ireland in the context of intensifying the creation of preferential zones. The importance of con- ducting further research on the development of public administration in the economic sphere, especially in the period of post-war recovery, was emphasized. Keywords: digitalization, special preferential taxation, reproductive energy, investment, IT-sphere, globalization, innovation, sustainable development JEL Classification: Е22, Е66, F29 INTRODUCTION The transition to a post-industrial type of social relations has marked the emergence of an innovative system of economy, characteristic of all developed countries of the world. Digital technologies play an important role for most of the population of the modern world, so it is important to combine the potential of all countries in their production and dissemination in all spheres of social life. Moreover, economic activity in a globalized world plays an important role in confronting global challenges. Thus, the transition to the mentioned system of economy is relevant for any developing country, including Ukraine, because thanks to it is possible to increase the level of social well-being and to cooperate with the leading countries of the world. Taking this into account, it is neces- sary to study what achievements in the sphere of innovation economy Ukraine already has and those that most need to be developed. Research Problem The problem of the research topic of this article is that the issue of innovation systems of the economy is quite broad for any country, so its study requires the consideration of a large number of diverse aspects. Besides, it is important not only to show what innovation systems exist in the Ukrainian economy but also to illuminate the dynamics of their development and embodiment, in order to determine those factors that influ- ence the implementation of innovative developments. DOI: 10.55643/fcaptp.1.48.2023.3977 Olena Cherniaieva PhD in Economics, Associate Professor of the Department of Economics of Enterprises and Management Educational, Educational-scientific professional-pedagogical institute, Bakhmut, Ukraine; e-mail: chernyeva@i.ua ORCID: 0000-0003-2339-9416 (Corresponding author) Tetiana Kulinich PhD in Economics, Associate Professor of the Department of Management of Organizations, Educational and Scientific Institute of Economics and Management, Lviv Polytechnic National University, Lviv, Ukraine; ORCID: 0000-0003-0110-7080 Tetiana Gutsul PhD in Economics, Associate Professor of the Department of Economics, The National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine; ORCID: 0000-0002-1826-240X Vladyslav Korolkov PhD in Economics, Associate Professor, Dean of the Economics and Management Faculty, National University "Zaporizhzhia Polytechnic", Zaporizhzhia, Ukraine; ORCID: 0000-0002-3593-8512 Olena Gubar PhD in Economics, Associate Professor, Head of the Department of Economic Theory and ntrepreneurship, National University "Zaporizhzhia Polytechnic", Zaporizhzhia, Ukraine; ORCID: 0000-0003-4923-5997 Received: 01/02/2023 Accepted: 12/02/2023 Published: 28/02/2023 © Copyright 2022 by the author(s) This is an Open Access article distributed under the terms of the Creative Commons CC-BY 4.0