ADMINISTRATIVE-LEGAL AND ECONOMIC INCENTIVES FOR THE DEVELOPMENT OF INFORMATION TECHNOLOGIES

Abstract

This scholarly publication examines the administrative, legal and economic incentives for developing information technology. It is evident that digitalisation has permeated almost all facets of public life, with information technologies being employed in the production of goods, trade, and the provision of services. These technologies play a significant role in enhancing the mechanism of public administration, reducing corruption risks, and providing both public administration bodies and citizens with effective tools to meet private and public needs. Concurrently, within the national apparatus of the state and economic relations, the implementation of information technologies frequently confronts bureaucratic procedures, as well as the absence of adequate administrative law regulation (i.e., gaps and collisions in the regulatory framework). Moreover, inadequate financing, investment, tax pressure and other adverse factors often impede the effective implementation of innovative information technologies in legal and economic practice. A system of effective legal and economic incentives has the potential to address the challenges arising in the digitalisation of administrative and economic relations. These relations are regarded as legal instruments for achieving both private and public objectives of participants in legal relations. Legislative measures encompass the streamlining of procedures for the registration and restructuring of information technology companies, in addition to the establishment of bespoke legal frameworks governing their operations. Economic incentives include tax benefits, special economic zones and industrial parks, investment attraction mechanisms, grants, the organisation of international economic forums, and other forms of international co-operation by public administration bodies. They also include state guarantees for loan programmes. In the context of intense international competition in the digital technology market, it is concluded that the creation of an effective system of administrative, legal and economic incentives to develop information technologies in Ukraine is an urgent task for public administration bodies. To ensure the further development of information technologies in Ukraine, it is essential to clearly define the objectives, as well as the legal and economic mechanisms for supporting digitalisation processes and fostering a favourable investment climate.