Baltic Journal of Economic Studies 168 Vol. 11 No. 5, 2025 This is an Open Access article, distributed under the terms of the Creative Commons Attribution CC BY 4.0 1 Zaporizhzhia National University, Ukraine (corresponding author) E-mail: cherep.av.znu@gmail.com ORCID: https://orcid.org/0000-0001-5253-7481 2 Zaporizhzhia National University, Ukraine E-mail: irina.znu@i.ua ORCID: https://orcid.org/0000-0001-5784-4237 3 Zaporizhzhia National University, Ukraine E-mail: yuliashvets@ukr.net ORCID: https://orcid.org/0000-0002-0294-1889 DOI: https://doi.org/10.30525/2256-0742/2025-11-5-168-176 STRATEGIC VECTORS OF DIGITALISATION OF THE UKRAINIAN ECONOMY BASED ON THE FORMATION OF AN OPEN INFORMATION SOCIETY Alla Cherep1, Iryna Dashko2, Yuliya Ohrenych3 Abstract. The article provides a robust evidential basis for the relevance and necessity of the digital transformation of Ukraine's economy, the implementation of Efficiency Indices for these processes and their significance for the regions and the state, as well as determining the effectiveness of this process for society, communities (hromadas), and the state. It is important to note that the effectiveness of digital transformation can be assessed using the Indices. The purpose of these indices is to create a basis for studying the level of digital transformation in local state administrations. This result will enable government bodies, analysts, developers, and other interested parties to optimise the digitisation process in the region. It is clear that building an open, development-oriented information society is one of Ukraine’s main priorities. In such a society, everyone can create, accumulate, access, use and exchange materials and knowledge, which provides each person with the right to fulfil their potential, promotes social and personal development and improves quality of life. An open information society is one in which everyone has access to information and communication technology. Thus, an analysis was carried out of the level of freedom and access to the Internet in Ukraine from 2012 to 2023, highlighting the principles of the Internet. The strategic prospects for developing digital innovative technologies in Ukraine were outlined, emphasising the opportunities for Ukrainians to use these technologies in everyday life, at work and in education. It was established that, thanks to digital technologies, every Ukrainian would be able to easily capitalise on their skills and knowledge, provided they had a smartphone and Internet access. The subject of the present study is the theoretical and methodological foundations and scientific and practical principles for the use of strategic vectors of digitalisation of the Ukrainian economy based on the formation of an open information society. The purpose of the article is to devise strategic vectors for the development of digital innovative technologies in Ukraine with the aim of forming an open information society. Keywords: indices, indicators, efficiency, open society, strategy, digital transformation, digital innovative technologies, knowledge. JEL Classification: C43, E01, D24, P47, L10 1. Introduction The Ukrainian economy and society have demonstrated resilience in the context of the ongoing Russian-Ukrainian war. It is the contention of the present study that the effective influence on the transformation of civic processes in Ukraine is exerted by digital transformation. The support of the European countries, which are Ukraine's strategic partners in the formation of an open digital society, is also of great importance. The open digital society is founded on the principles of the Internet: namely, the right to exchange information without censorship or unnecessary interference. Internet freedom is about more than just convenience. It is fundamental to a democratic society that enshrines the principles of freedom of speech and access to information. Baltic Journal of Economic Studies 169 Vol. 11 No. 5, 2025 These principles, as well as the processes of digital transformation have been studied by foreign and domestic scientists, namely: Bolila S. 1. (2023), Hazen D., Horrell J., and Merrill-Oldham J. (1998), Kuybida V., Karpenko, O., and Namestnik V. (2018), Pichkurova Z. (2023), Savon K. (2022), Tursky  F. (2022), Cherep A., Dashko I., and Ohrenych Yu. (2024), Cherep A., Voronkova V., Cherep O., Kaliuzhna Yu., and Andriukaitene R. (2024), Cherep, A., Dashko I., Ohrenych  Yu., Cherep O., and Helman V. (2024), Cherep A., Ohrenich Yu., Oleinikova  L., and Vasylenko D. (2024). However, the issue of how digitalisation impacts the formation of an open digital society remains unresolved. This makes the topic of our scientific research both relevant and timely. During the Russian-Ukrainian war, the necessity of digital transformation of the Ukrainian economy has intensified, as it significantly affects all areas of life in society and each individual separately. On December 31, 2024, the Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Strategy for Digital Development of Innovative Activity in Ukraine for the Period until 2030 and Approval of the Operational Plan of Measures for its Implementation in 2025-2027" No. 1351-р, which describes the problems that led to the adoption of the Strategy and outlines the vision of Ukraine as a country of innovations as well as the directions, principles, goals, and objectives of the state policy in the field of digital development of innovation. Regional digital transformation is one of the Ministry of Digital Transformation’s key priorities. Recognising the necessity of digital transformation, Ukraine was one of the first countries to introduce the position of CDTO (Chief Digital Transformation Officer) in 2020 (Head of Digital, 2020). The development of digital technologies will increase demand for government IT specialists. Currently, the number of employees in the structural unit responsible for computerisation is 70.7% of the estimated figure. For Ukraine, it is of paramount importance to implement digital transformations in all regions of the country. In order to assess the dynamics of such transformational changes, the Digital Transformation Index has been introduced as a tool that allows for understanding and comparison of the progress of digital transformations in the regions. The assessment of digital transformation is imperative for the analysis, planning and implementation of digital reforms. 2. Materials and Methods In preparing this article, a range of scientific methods was employed. Terminological analysis, theoretical generalisation, scientific abstraction, and systemic and structural analysis were used to examine the processes of digital transformation in the Ukrainian economy, to assess the implementation of efficiency indices, and to determine their significance for the regions and the state. Financial-economic, statistical, and comparative analyses were applied to evaluate the level of digital transformation in local state administrations. Systematisation, structural analysis, induction and deduction, and generalisation were used to assess the level of freedom of and access to the Internet in Ukraine from 2012 to 2023, with particular attention to the underlying principles of its functioning. Finally, systematisation and generalisation were employed to formulate strategic measures for the development of digital innovative technologies in Ukraine, with an emphasis on the opportunities for their use by citizens in everyday life, work, and education. 3. Results The Digital Transformation Index for Ukraine was developed by the Ministry of Digital Transformation through a process of digitisation. This index is one of the tools employed to measure the processes of computerisation and digitisation in 24 regions of the country. This analysis enables the assessment of the efficacy of authorities in the field of digitisation and the identification of the requirements for digital transformation. Furthermore, instruments designed to evaluate the efficacy of digitalisation at the local level have been developed. These include the Community Digitalisation Index and CDTO performance dashboards. In addition, the Diia platform has been initiated (Internet freedom, 2024). The digital community has already engaged over 950 digital community leaders. The Ministry of Digital Transformation's stated ambition is to create new opportunities for each region and the entire country through digital transformation, thereby ensuring effective development in the context of European integration despite the challenges currently being experienced. The Index is a tool used to measure the level of digital transformation in the state. The maximum value of the Index is 1 point, reflecting the indicators of capacity in the economy, digital skills, infrastructure, public services, and digital transformation at the local level. In the current year, the Index comprises nine evaluation indicators (see Table 1) (Digital Transformation, 2024). According to the survey results, the average score of the Digital Transformation Index was 0.497 out of a maximum of 1 in 2024 (see Table 2). The highest scores were recorded for the following sub-indices: "Basic e-services penetration" (0.759), "Institutional capacity" (0.687) and "Internet development" (0.686). In contrast, the lowest scores Baltic Journal of Economic Studies 170 Vol. 11 No. 5, 2025 were noted for the "Paperless mode" sub-index (0.421), highlighting the need to increase efforts in this area in 2025. The research indicates that establishing an open information society is a crucial objective, with the potential to improve the quality of life for all individuals. It is the contention of the present study that an open information society fosters improved access to education and knowledge, enhanced transparency and accountability of government bodies, increased civic involvement, and promotion of creativity and innovation. Information serves as the basis for education and knowledge. The notion of an open information society is predicated on the premise that it can facilitate access to education and knowledge for all individuals, irrespective of their social status, place of residence, or financial resources. Information is fundamental to transparency and accountability. The establishment of an open information society is a prerequisite for ensuring public access to information regarding governmental operations. This, in turn, is instrumental in combating corruption and increasing trust in government. Table 1 Main sub-indices of the Digital Transformation Index of the regions of Ukraine (Digital Transformation, 2024) Indicators Sub-index name Coefficient value Number of indicators Number of indices ІС Institutional capacity 0,05 5 14 Digital transformation strategy of the region 0,1 3 Regional informatisation programme 0,4 4 Structural unit for digital transformation 0,25 2 Supporting organisations 0,1 2 Digital communities 0,15 3 ІD Internet development 0,05 1 5 Establishment of open Wi-Fi zones in visited areas 1 5 ASC Administrative Services Center Development 0,005 4 13 Development of the ASC network 0,35 4 Number of services in ASCs 0,35 5 Automation of ASCs 0,15 3 Barrier-free access and modernisation of ASCS 0,15 1 PM Paperless mode 0,05 4 20 E-document flow 0,3 1 Diia QR / sharing / official / validation through API 0,05 5 Open data 0,25 4 Digitisation of registers 0,4 10 DE Digital education 0,05 2 2 Involvement of the population in digital skills development programmes 0,6 1 E-journals in general secondary education institutions 0,4 1 OBC Oblast business card 0,05 3 6 Website of the Oblast State Administration 0,3 2 Address register 0,4 3 Diia. Business 0,4 1 BeSP Basic e-services penetration 0,05 2 6 Inventory of real estate objects 0,4 2 Digitalisation of the social sphere 0,6 4 SDT Sectoral digital transformation 0,05 4 12 Information security and resilience of critical infrastructure 0,3 5 Healthcare 0,25 1 Civil protection 0,3 2 E-democracy 0,15 4 Mandatory projects 0,6 3 ІеP Individual CDTO e-projects 0,6 2 4 Elective projects 0,4 1 Overall structure of the Index 1 27 82 Baltic Journal of Economic Studies 171 Vol. 11 No. 5, 2025 Information is imperative for involvement in public life. An open information society has the potential to empower individuals to more effectively comprehend the challenges faced by society and engage in decision- making processes. Information is widely considered to be the foundation of creativity and innovation. The advent of an open information society has the potential to facilitate communication, the exchange of ideas, and collaboration among individuals, which may, in turn, result in the development of novel inventions and creative solutions. There are several measures that can be implemented to create an open information society. These include investing in Internet infrastructure, developing digital skills and protecting human rights online. In order to ensure that everyone has access to information and communications, it is essential to invest in Internet infrastructure. This involves providing Internet access in remote areas and making it affordable for those on low incomes. In order to ensure that all individuals can use information and communication technologies effectively, it is necessary to develop their digital skills. This involves providing individuals with the opportunity to learn how to use the Internet, computers and other digital technologies. In order for an information society to be considered truly open, it is essential that the protection of human rights online is guaranteed. This involves ensuring the safeguarding of fundamental rights, including freedom of speech and information, and other rights that are considered to be fundamental to human dignity. The level of Internet freedom in Ukraine was measured and documented from 2012 to 2023 using data from Freedom House (Fig. 1). The analysis review conducted by the Center for Democracy and Rule of Law examines the characteristics of Ukraine's online sector and analyses how the internal dynamics of the Internet have changed over the past decade. In the context of the Russian-Ukrainian war, it is imperative to ensure the dissemination of current information to the Ukrainian populace and to facilitate uninhibited discourse on the prevailing and strategic socio-political issues. Concurrently, the war engenders technical, political and legal challenges in the pursuit of digital autonomy (Zinchenko, 2025). The preservation of free access to the Internet is affected by a number of factors, including constant shelling of the Internet infrastructure, frequent power outages, loss of capacity, and the loss of important information. As demonstrated in the survey results of 2012-2013, conducted by international human rights organisations, Ukraine received a score of 73 and 72 out of 100 points, respectively, for its Internet freedom ranking. This result positioned Ukraine as "partially free". However, in 2014 (the year of the Russian aggression outbreak), the level of Internet freedom in Ukraine decreased, being classified as "partially free" (67 points). Subsequent years witnessed a further decline, with Ukraine achieving 59 points in 2023 with regard to Internet freedom. The data is based on the official Internet freedom standards (Fig. 2). The Global Internet Freedom Index has been in steady decline for the past 14 years. The level of protection of human rights online has decreased in 27 out of the 72 countries included in the Freedom on the Net (FOTN) ranking, while improvements have been seen in 18 countries. Kyrgyzstan experienced the largest decline in its ranking this year, as President Sadyr Japarov intensified efforts to silence digital media and restrict online organisations. China and Myanmar have the worst Internet freedom environments in the world. Table 2 Digital Transformation Index of Ukraine for 2024 (Index of Digitalisation, 2024) No. Oblast name Index value No. Oblast name Index value 1 Overall for Ukraine 0,497 14 Ivano-Frankivsk 0,436 2 Lviv 0,850 15 Sumy 0,435 3 Dnipropetrovsk 0,844 16 Kirovohrad 0,407 4 Odesa 0,804 17 Luhansk 0,404 5 Vinnytsia 0,755 18 Chernihiv 0,362 6 Volyn 0,711 19 Zhytomyr 0,343 7 Zakarpattia 0,647 20 Ternopil 0,341 8 Poltava 0,640 21 Chernivtsi 0,254 9 Rivne 0,632 22 Khmelnytskyi 0,230 10 Kharkiv 0,617 23 Zaporizhzhia 0,209 11 Kherson 0,582 24 Mykolaiv 0,180 12 Cherkasy 0,538 25 Donetsk 0,129 13 Kyiv 0,474 26 Autonomous Republic of Crimea No data available Baltic Journal of Economic Studies 172 Vol. 11 No. 5, 2025 In Myanmar, the military regime has introduced a new censorship system that has tightened restrictions on virtual private networks (VPNs). Conversely, Iceland has retained its position as the country with the freest online environment, while Zambia has achieved the greatest improvement in its ranking. In 2024, FOTN assessed the conditions in Chile and the Netherlands for the first time, both of which demonstrated robust safeguards for human rights online (see Table 3). Building an open information society is a complex task, but it is one worth pursuing. Such a society can help to make the world a better place for everyone. It is the contention of the present study that Ukraine should establish an open information society, with due consideration for globalisation processes and the ongoing Russian-Ukrainian war. In order to achieve this objective, a series of measures must be implemented to guarantee universal access to broadband Internet for all citizens. These measures should include a commitment to investment in Internet infrastructure and the provision of subsidies for low-income individuals. From 2012 to 2023, there was a substantial increase in the number of Ukrainians who used the Internet on a regular basis. The proportion of Internet users in 2012 was 33.7%, and this figure increased to 80% in 2023. The advent of such a radical change can be attributed to the substantial development of Internet infrastructure, the emergence of 4G networks, the decline in service provider prices, and the absence of stringent state control over a period of more than 11 years (Fig. 3). Furthermore, it is imperative to devise digital skills training programmes for citizens of all age demographics. This objective can be pursued through collaboration with educational institutions, public organisations, and the private sector. In addition, the legal protection of human rights on the Internet should be ensured through the adoption of legislation that prohibits discrimination, cyberbullying, and other forms of illegal behaviour online. Statistical data demonstrate that since 2012, there has been a decline in consumer rights Figure 1. The level of Internet freedom in Ukraine for 2012-2023 (Zinchenko, 2025) The assessment is based on a scale from 0 (limited access to the Internet) to 100 (free access to the Internet)   Figure 2. Access to online content in Ukraine (Freedom House, 2024)  The rating is based on a scale from 0 (many restrictions on content) to 35 ( few restrictions)   Baltic Journal of Economic Studies 173 Vol. 11 No. 5, 2025 in Ukraine (Fig. 4). From 2020 to 2022, there was an enhancement in the consumer rights in Ukraine in comparison with the period from 2017 to 2019. However, in 2023, these rights underwent a reduction, a phenomenon that can be attributed to the Russian- Ukrainian war, which had a substantial impact on the restrictions and opportunities to articulate perspectives on political, social, educational, and other societal issues. The implementation of these measures will assist Ukraine in the establishment of a society in which all individuals have access to information and communications, thereby leading to an enhancement in the quality of life for every Ukrainian citizen. A digital transformation strategy for the region has been developed and approved. This strategy involves the creation of regional and local computerisation programmes that provide funding for digital transformation measures. Furthermore, a full-fledged structural unit for digital development has been established within local executive bodies and local self-governments. These measures are among the primary steps that allow for the qualitative and rapid implementation of national digitalisation programmes at the regional and local levels. Statistical data indicates that by December 31, 2030, Ukraine has the potential to assume a leadership role in innovation and new technologies within the European continent. Digitalisation has been identified as a key driving force for Ukraine's economic growth and an increase in the well-being of citizens over the past decade (Ukrainian Institute, 2024). It is assumed that digital technologies will enable every Ukrainian to effectively capitalise on their skills and knowledge. With nothing more than a smartphone and Internet access, individuals can: Table 3 Freedom House: freedom on the Internet 2024 [Internet freedom in Ukraine, 2024; Freedom, 2024] No. Country Points No. Country Points 1 Iceland 94 17. Mexico 61 2 Estonia 92 18. Ukraine 59 3 Canada 86 19. India 50 4 Japan 78 20. Indonesia 49 5 United Kingdom 78 21. Kyrgyzstan 48 6 Germany 77 22. Azerbaijan 34 7 Australia 76 23. Kazakhstan 34 8 France 76 24. Turkey 31 9 United States 76 25. Uzbekistan 27 10 Italy 75 26. Saudi Arabia 25 11 Armenia 74 27. Belarus 22 12 Georgia 74 28. Russia 20 13 South Africa 74 29. Iran 12 14 Argentina 30. China 9 15 South Korea 66 31. Myanmar 9 16 Brazil 65 Figure 4. The rights of Internet users in Ukraine (Freedom House, 2024) The assessment is based on a scale from 0 (many rights violations) to 40 ( few rights violations)   Baltic Journal of Economic Studies 174 Vol. 11 No. 5, 2025 – Offer their services online without intermediaries or employers. – Establish a business from scratch without startup capital or physical assets. – Generate income from their creative potential and innovative ideas. Scientific research has demonstrated that Ukraine has evolved into a prominent intellectual hub, with the establishment of conducive conditions for the flourishing of human potential. According to the strategic outlook entitled "Ukraine 2030E – a country with a developed digital economy", the share of the digital economy in Ukraine's GDP is projected to increase to 65%. The principle of digital priority is to be implemented on a nationwide basis, with the objective of permeating all spheres of public life services with digitalisation. The maintenance and development of any physical system is only possible in the absence of a digital alternative (Digital Agenda, 2020). It is the contention of the present study that the digital transformation that has taken place in Ukraine has resulted in the following consequences: Optimisation of business processes; – creation of new products and services through technologies of the Internet of Things, VR, cloud services, and AI; – cost reduction (savings on people through automation and robotisation, accounting automation, “smart” supply and fleet management, fuel consumption control); – offering completely new business solutions. 4. Conclusions It is evident, as demonstrated by the research that has been conducted, that Ukraine's digital transformation is an ongoing process. In an effort to enhance Ukraine's status as a digital nation, the government, business community, and society at large are collaborating to achieve this objective. The digital economy in Ukraine is the result of targeted state policy, which has the following key elements: recognition of the state as the main player in the sector; legislative protection of citizens' digital rights; infrastructure development; implementation of digital transformation projects; creation of new jobs; implementation of universal digital services for citizens. It has been demonstrated that the state has become a significant consumer and user of innovations, has set the trend for digital culture, and has popularised education in the hi-tech sector. Furthermore, Ukraine has enacted legislation aimed at ensuring its citizens have access to digital services, protection of their personal data, and other rights. The research has demonstrated that Ukraine has successfully connected all households to fixed broadband Internet and implemented several other projects, namely the smartification of physical infrastructure. Digital transformation in Ukraine is characterised by the implementation of large-scale projects, including e-government, "smart" cities, electronic identification of citizens, and electronic customs, among others. It has been demonstrated that Ukraine has engendered conditions conducive to the genesis of over 300,000 new employment opportunities in the digital economy sectors. Ukraine has implemented universally accessible digital services for its citizens, namely in the domains of education, healthcare, transportation, and security. The state has effectively transformed itself into an innovative entity that applies digital technologies to improve the efficiency of its governance, political life, and internal structure. The impact of digitalisation on business, citizens, and ultimately the budget has been Figure 3. Access to the Internet in Ukraine (Freedom House, 2024) The assessment is based on a scale from 0 (many obstacles to access) to 25 ( few obstacles)   Baltic Journal of Economic Studies 175 Vol. 11 No. 5, 2025 recognised by political elites, who have formulated a new agenda and literally imposed digital culture in the country. Ukraine has established a ministry with the responsibility of implementing the innovation strategy. It can be noted that several changes brought about by digitalisation in Ukraine are of particular importance for citizens. These include – e-governance, which enables individuals to receive public services online without leaving home; – distance learning, which allows schoolchildren and students to study remotely via online platforms; – telemedicine, which provides patients with the possibility of receiving medical consultations without visiting a hospital; – e-commerce, which allows Ukrainians to purchase goods and services online; and – digital creativity, which enables individuals to create and monetise their creative content in the digital environment. Digitalisation as a phenomenon has been in existence for some time, but in Ukraine, the processes of digital transformation have only recently begun. However, the pace of these processes in the country allows us to state that Ukraine is currently a digitalised state. Digitalisation has been demonstrated to facilitate citizens' access to a more extensive array of information and data, enable the filtration of personal content, and ensure the provision of convenient and accessible services. In the economic component of national security, digitalisation functions as an anti-corruption instrument, thereby rendering financial, tax, and economic operations transparent by diminishing the influence of the human factor and eradicating human errors. Furthermore, the advent of digitalisation has enabled the effective monitoring and analysis of the activities of relevant bodies and citizens. It is evident that the implementation of digital transformation within the industry, as a conduit for anti-corruption initiatives, has engendered economic repercussions from these endeavours. The digitalisation of the energy component of national security increases the efficiency of energy systems and optimises energy production. Equally important is the fact that digital transformation is increasing the safety level for employees in this industry through the implementation of various devices that enable a quick and timely response to danger, or even its prevention. Digital technologies can be used to develop renewable energy sources, such as solar and wind power plants, which would help to reduce Ukraine’s energy dependence and increase its energy security. The digitalisation of the social sphere has made Ukraine the first country to give a digital passport the same legal force as a physical document. The creation of Diia has enabled remote access to various public services, saving time and having an economic impact since its launch. It is also worth mentioning that the app influences anti-corruption processes. Digitalisation has also contributed to the development of the e-Health system, significantly simplifying relationships within the healthcare sector. 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Strategy "Ukraine 2030E – a country with a developed digital economy" (2024). Available at: https://strategy.uifuture.org/kraina-z-rozvinutoyu-cifrovoyu-ekonomikoyu.html#6-2-5 Digital Agenda for Ukraine – 2020. Available at: https://prostir.fandom.com/wiki/%D0%A6%D0%B 8%D1%84%D1%80%D0%BE%D0%B2%D0%B0_%D0%B0%D0%B4%D0%B6%D0%B5%D0%BD%D0% B4%D0%B0_%D0%A3%D0%BA%D1%80%D0%B0%D1%97%D0%BD%D0%B8_%E2%80%93_2020 Received on: 27th of August, 2025 Accepted on: 16th of October, 2025 Published on: 21th of November, 2025