ENSURING INVESTMENT AND INNOVATION DEVELOPMENT OF ENTREPRENEURSHIP IN URBAN AREAS IN A GLOBAL COMPETITIVE ENVIRONMENT

Abstract

The article examines the theoretical and methodological foundations as well as the practical aspects of ensuring investment and innovation-driven development of entrepreneurship in urban areas of Ukraine under the conditions of globalization and digital transformation. It is substantiated that cities play a key role in shaping the competitiveness of the national economy, as they concentrate financial, production, and human resources, serve as knowledge hubs, and act as platforms for the development of startups and business ecosystems. It is shown that Ukraine’s post-war recovery requires the active integration of urban economies into European and global production and innovation chains. The main barriers to development have been identified, including: low investment attractiveness due to high risks and weak investor protection; underdeveloped innovation infrastructure; regional imbalances in capital distribution; outflow of human capital and brain drain; low level of integration into global markets; complexity of administrative procedures and inefficiency of public-private partnership mechanisms; and deterioration of urban infrastructure. The authors summarize modern scientific approaches of both domestic and foreign scholars, which emphasize the role of institutional reforms, venture investment, clustering, and the development of “smart cities” in enhancing territorial competitiveness. The comprehensive toolkit for development proposed by the research team includes institutional, financial, innovation-technological, organizational-network, and environmental mechanisms. The systematization of factors and performance indicators (KPIs) enables monitoring the dynamics of the entrepreneurial environment, identifying strengths and weaknesses, and promptly adjusting urban policies. A checklist for assessing the innovation and investment potential of urban areas is proposed as a practical tool for local governments, development agencies, and investors. Based on the conducted research, a roadmap for the development of urban entrepreneurial ecosystems in Ukraine has been developed. It envisages three stages: short-term – formation of institutional and financial mechanisms; medium-term – scaling of innovation infrastructure, integration into international programs, and strengthening of the “green” component; long-term – transformation of cities into global centers of innovation and sustainable development. The authors prove that the comprehensive implementation of the proposed strategy will not only overcome the consequences of wartime destruction but also lay the foundation for economic resilience, improved quality of life, and Ukraine’s integration into the global competitive space.