The article examines the development and diffusion of digital technologies in Ukraine and the EU, and their impact on society and the economy. It highlights the rapid growth and adoption of digital solutions and underlines Ukraine’s significant potential for further progress in this area. Key benefits of digital technologies for businesses include market forecasting, process automation, asset monitoring, cost reduction, improved product and service quality, and remote support. However, these benefits are accompanied by risks, such as potential job losses, cybersecurity and privacy threats, and data and human resource quality issues, especially in small and medium-sized enterprises (SMEs). To assess the readiness of Ukrainian SMEs to adopt digital technologies and identify challenges, a survey was conducted. To increase the efficiency of digital transformation, the article proposes the creation of an innovation ecosystem that integrates the interests of all stakeholders. The Digital Innovation Hub model based on the Igor Sikorsky Kyiv Polytechnic Institute is presented as a successful example demonstrating effective collaboration between researchers, educational institutions, SMEs and international partners. This model helps to estimate resource costs and time, minimize development and implementation risks, and respond to customer needs. The systematic approach to combining science, education and business through digital technologies aims to enhance human potential and address economic and socio-economic issues. An increased focus on local digital innovation hubs will help build a national innovation ecosystem and enhance the competitiveness of the country’s digital technology sector.