Abstract: The rapid emergence of market mechanisms and the transition of enterprises from resource-based thinking to market-oriented thinking have caused the need for a deeper understanding of management and analysis methods to diagnose and evaluate the efficiency of the functioning and development of business entities. In order to reach an accurate conclusion on the effectiveness of a business entity, it is essential to have an in-depth knowledge of the principles of management, analysis, and the various tools used to measure performance. It is important to understand the basic functioning of a market economy and to be aware of the various forces such as competition, government regulations, and consumer preferences that shape the environment in which a business entity operates. The aim of this article is to make a theoretical analysis of the scientific literature on the smart economy and identify the key elements that influence the innovative development of enterprises in the context of the formation of a smart economy. To this end, the article will analyze a number of scientific papers related to the topic, focusing on the main areas of the smart economy. The analysis of these areas will enable the identification of critical elements that influence the innovative development of enterprises in the context of forming a smart economy. Specifically, the article will focus on the challenges and opportunities that are associated with the development of digital infrastructure, the implications of digital technology for enterprise development, the impact of data-driven solutions, and the implications of digital transformation on the economy. The digital transformation of enterprises is essential to staying competitive in the modern economy. To achieve this, companies must invest in the development of their human capital, innovate new services, and stay focused on the needs of their customers.

Additionally, companies should work to create an environment that facilitates the growth of startups, as these entrepreneurs can provide a unique source of innovation and growth. By investing in these areas, companies will be well-positioned to make the most of the opportunities offered by the smart economy. In conclusion, the results of the comparison and analysis of information, the synthesis and analysis of data, and the identification of the direction of innovative growth of enterprises and the need for its investment have allowed us to propose the above key elements of enterprise development in a smart economy. These elements, together with the implementation of the necessary investments, will ensure the successful development of enterprises in the modern economic environment.