THE IMPACT OF DIGITALIZATION ON PUBLIC-PRIVATE PARTNERSHIPS IN THE INFRASTRUCTURE SECTOR: TRENDS IN THE DEVELOPMENT OF "SMART CITIES"

Abstract

The article analyses the impact of digitalisation on the creation of a ‘smart city’ through the prism of public-private partnerships in the field of infrastructure. It is noted that digitalisation processes have a significant impact on the development of modern cities. Innovations in the digital environment are seen as a tool for solving problems in modern cities. Based on digital solutions, new models of urban areas are created, and a strategy for the formation and development of ‘smart cities’ is implemented. ‘Smart city’ innovations are a tool for public administration and serve as the basis for local self-government. It is emphasised that the introduction of digital technologies into the urban environment can create conditions for the existence of cities based on new principles of social involvement of citizens in management decision-making processes, cooperation and public-private partnerships, social innovations, etc. In this context, cities are an innovative environment that, on the one hand, creates demand for new digital innovations and, on the other hand, offers the latest digital solutions in an open, user-oriented environment. The concept of a ‘smart city’ identifies several key factors that determine the direction of change in the urban environment: institutional – formulates rules for the use of digital systems; economic – related to increasing the competitiveness of the city and the well-being of Ukrainian citizens; organisational and managerial – covers issues of project management in the field of creating a ‘smart city’; technological – related to the application of various technological solutions, their accessibility and the possibility of integration into the existing digital model of the city; ecological – the application of modern technologies to solve environmental problems, rational use of natural resources and protection of the natural environment; social – aimed at meeting the needs of city residents and their associations. It is emphasised that a ‘smart city’ is a combination of socio-technical processes. Firstly, it is the progressive development of science and technology, the application of innovative solutions and their implementation in various spheres of society. The second important feature is the increased focus on improving people's quality of life and creating a comfortable environment for them to live in. The third aspect is related to significant changes in the system of public administration of territories and the introduction of innovative approaches to resource allocation, etc. Together, these processes should lead to the formation of new social values that contribute to the development of urban infrastructure and improve the quality of life of Ukrainian citizens. The practice of developing smart cities has shown that long-term institutionalised cooperation between the private and public sectors in the field of infrastructure is extremely important for successful urban technological innovation. It has been concluded that the creation of a digital infrastructure that enables interaction between the local population and public authorities has a positive impact on the urban environment management system and contributes to solving problems of local importance by involving Ukrainian citizens in management decision-making processes.