THE IMPACT OF DIGITAL TRANSFORMATION ON THE FORMATION OF THE INVESTMENT MECHANISM FOR FOOD INDUSTRY ENTERPRISES: KEY PRIORITIES

Authors

DOI:

https://doi.org/10.32782/city-development.2025.3-9

Keywords:

investment mechanism, digital transformation, food industry, innovative technologies, investment attractiveness, Industry 4.0, AgroFoodTech

Abstract

This article provides a comprehensive analysis of the digital transformation's impact on modernizing the investment mechanism within Ukraine's food industry. Five priority vectors of technological modernization of enterprises in the industry have been identified: technologization of production processes, quality assurance and traceability, forecasting and market analytics, development of digital communication channels, and optimization of resource consumption. It highlights the critical issue of insufficient capital investment in technological innovations, which accounts for only 3-5% of the total, in stark contrast to the 15-20% seen in economically developed nations. The study identifies and systematizes priority vectors for investment: integration of the Industrial Internet of Things (IIoT) for automation, implementation of blockchain technologies to ensure product safety and traceability, use of artificial intelligence for predictive market analytics, development of digital ecosystems for consumer engagement, and application of smart energy management systems. A four-component model for constructing an effective investment mechanism is proposed, encompassing the formation of a favorable institutional framework, diversification of financial instruments, development of technological partnerships, and investment in human capital. This research underscores that a systemic approach to fostering innovation is essential for enhancing the sector's global competitiveness and ensuring its sustainable growth in the digital age. It is argued that digital transformation is not just a technological trend, but a fundamental imperative for increasing the investment attractiveness and competitiveness of Ukrainian food industry enterprises. It has been determined that priority investment in the intellectualization of production, traceability systems, predictive analytics, digital client platforms, and resource-saving technologies will allow Ukrainian enterprises not only to modernize their production base, but also to successfully integrate into global value chains, ensuring the sustainable development of the industry in the long term.

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Published

2025-08-25

How to Cite

Mirchuk, N. (2025). THE IMPACT OF DIGITAL TRANSFORMATION ON THE FORMATION OF THE INVESTMENT MECHANISM FOR FOOD INDUSTRY ENTERPRISES: KEY PRIORITIES. CITY DEVELOPMENT, (3 (07), 63–67. https://doi.org/10.32782/city-development.2025.3-9

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