The article presents a comprehensive analysis of institutional support for the development of passenger road transport enterprises in the context of an innovative economy. The research focuses on the impact of key components of the institutional environment on the efficiency and competitiveness of transport enterprises. The study highlights the role of regulatory frameworks, including quality and safety standards, public private partnership mechanisms, financial and economic incentives, innovation and digital infrastructure, as well as social orientation and environmental efficiency of transport services. The methodology combines institutional economic theories with a practical assessment of transport sector performance indicators, including passenger flow statistics, fleet modernization, and digitalization of management processes. The study also draws on the experiences of European countries in creating stable institutional frameworks that enhance investment attractiveness and foster innovation in the transport sector. Key findings indicate that critical factors for industry development include: modernization of the vehicle fleet, implementation of electronic ticketing and dispatching systems, creation of «smart mobility» clusters, and stimulation of innovation through tax incentives and grants. The results demonstrate that effective institutional support requires a coordinated combination of regulatory, financial, innovation-driven, and socially oriented measures. The study provides practical recommendations for optimizing institutional mechanisms to enhance the efficiency, safety, accessibility, and environmental sustainability of passenger road transport services in Ukraine. The research provides a systemic framework for evaluating institutional support in the transport sector, integrating institutional, economic, social, and technological dimensions. It emphasizes the role of digital governance, inter-organizational cooperation, and regional innovation infrastructure in promoting development of passenger transport enterprises. The study offers a set of evidence-based recommendations for policymakers, transport operators, and academic institutions aiming to modernize passenger transport, implement low-carbon technologies, improve service quality, and stimulate innovation through effective institutional and financial mechanisms. These recommendations can facilitate Ukraine’s integration into the European transport space and enhance the overall competitiveness of the national transport sector.
Author Biography
Viktoriia Nykonchuk, National University of Water and Environmental Engineering, Rivne
