A Structural Analysis of Digital Transformation Development in Ukrainian Regions

Abstract

The rapid acceleration of digital transformation processes has become a strategic imperative for regional development, particularly in countries facing institutional, infrastructural, and security challenges. This study aims to perform a structural analysis of digital transformation development across Ukrainian regions to identify typical regional groups and their digital characteristics, using data from the national Digital Transformation Index. The research is driven by the need to enhance regional governance capacities and develop differentiated digital policies that reflect the specific characteristics and maturity levels of subnational units. The methodological framework combines cluster analysis based on a composite Digital Transformation Index with entropy-based validation and structural interpretation of clustering outcomes. The clustering procedure was carried out using standardised subindex values reflecting institutional capacity, digital infrastructure, service digitalisation, human capital, and innovative initiatives. The results reveal a pronounced asymmetry in digital maturity among regions and identify three structurally distinct groups. The first cluster includes regions with limited digital readiness, infrastructure gaps, and institutional constraints, requiring targeted foundational support. The second cluster comprises digital frontrunners characterised by comprehensive integration of digital services, strong administrative capacity, and innovative local initiatives. The third cluster encompasses moderately advanced regions with potential for development yet facing challenges in digital innovation and strategic coherence. Each cluster demonstrates unique internal digital profiles, which suggests the ineffectiveness of uniform digital policies. The practical value of the study lies in providing a typology-based model for regional digital transformation policymaking. It supports data-driven decision-making, enables prioritisation of interventions, and contributes to reducing digital inequality.