Institutional-cognitive reconfiguration of public administration in the context of digital transformation: mechanisms for catalyzing innovation and the data economy

Digital transformation has become a defining vector of contemporary development, radically reshaping societal practices and economic processes. The rapid diffusion of digital technologies creates new opportunities to accelerate growth, enhance productivity and quality of life, and modernize public services. At the same time, it brings a range of challenges: widening digital inequality, heightened cybersecurity vulnerabilities, risks to privacy, shifts in the labor market, and more. Under these conditions, adapting systems of public administration to the digital era–above all in the domain of managing economic development–becomes especially important. In a digital economy, traditional governance models require rethinking and supplementation with breakthrough solutions and institutional innovations, enabling governments to implement economic policy more effectively, foster innovation, and ensure sustainable growth. This article analyzes conceptual approaches (“breakthrough ideas”) to state management of economic development based on digitalization, examines new institutional forms and mechanisms introduced in the public sector to support the digital transformation of the economy, and considers practical case studies of their implementation. A review of recent scholarly publications and strategic documents that lay the groundwork for digital development is conducted. It is found that the active formation of a system of public administration for digital development in Ukraine requires a focused state policy and effective work of newly created institutions, in particular the Ministry of Digital Transformation. Examples are given of the implementation of digital projects (superservices and e-systems) in the public administration sphere that have demonstrated practical effects – from increased transparency and budget savings to an improved business climate. It is emphasized that the digital transformation of the public sector has become the basis for its modernization and can significantly stimulate the development of an open information society, democracy, productivity, and an innovation-driven economy. The practical significance of the study lies in identifying promising directions for improving state economic development policy in the digital age and generalizing the experience of implementing institutional innovations, which can be used in developing strategic documents and reforms in the field of public administration.