An Integrated Model of the Economic Transformation of Smart Urban Space: Financial, Economic, and Institutional Foundations

The transformation of smart urban spaces can enhance the quality of life by improving municipal services and resource efficiency. However, it requires addressing cybersecurity, digital inequality, investment needs, and opportunities for innovation. This article presents a comprehensive analysis of the key components of an integrated approach to implementing the smart space concept in Ukraine. Particular attention is paid to the mechanisms for establishing strategic priorities that ensure the effectiveness of transformative economic changes in urban environments. The aim of the study is to assess the statistical relationships between the digital, socio-economic, financial, and security characteristics of territories and their Gross Regional Product (GRP) per capita, and to build on this basis a financial model for the economic transformation of the smart urban space. The research employs regression analysis to evaluate factors of economic performance, econometric diagnostics to verify model adequacy, and an indexing method to determine the Security Index. The constructed regression model serves as the quantitative foundation for the financial transformation model, enabling an assessment of the links between employment, the digital economy, per capita capital investment, digital public services, and security, on the one hand, and GRP per capita, on the other. Statistically significant relation-ships with per capita GRP were found for employment (0.88), the digital economy (-0.34), per capita capital investment (0.56), digital public services (0.43), and the Security Index (-0.43). The obtained results define the quantitative parameters of a financial model for the economic transformation of smart urban space. Here, the financial model is understood as an econometric model of GRP per capita that serves as a quantitative basis for a financial-economic frame-work; the analysis is conducted at the regional level. The article outlines the key principles of an integrated approach to implementing the smart space concept in Ukraine. An integrated model has been developed within the framework of the concept of intellectualizing urban space in Ukraine. Particular attention is paid to mechanisms for analysing these components and their practical application. Examples of existing methodologies that enable the effective implementation of analysis mechanisms, ensuring a comprehensive and systemic approach to smart city development, were analysed. The research findings contribute to refining tools for strategic planning and the implementation of transformative initiatives aimed at rebuilding smart space.