Kuzmenko S. M., Postgraduate Student of the Department of Management and Public Administration, O. M. Beketov National University of Urban Economy in Kharkiv, Kharkiv, Ukraine

ORCID: 0009-0009-3341-9477
e-mail: Serhii.Kuzmenko@kname.edu.ua

Diagnosis of the Current State of Ukraine’s Defense Industry

Abstract. Introduction. The article provides a thorough analysis of Ukraine’s defense-industrial complex, a sector that is crucial to the country’s economy and security. In the face of large-scale armed aggression against Ukraine, the defense industry plays a pivotal role in sustaining the state’s military capabilities, fostering technological autonomy, and securing competitive positions in the global arms market. It analyzes the sector’s transformational processes, including the growing influence of the private sector and the strengthening of segments related to unmanned systems, military electronics, precision weaponry, communications, and cybersecurity.

Purpose. The article aims to analyze the current dynamics, challenges, and prospects of Ukraine’s defense-industrial complex; identify its strengths and weaknesses; and determine key directions for modernization and integration into the global security and defense system.

Results. The research identified several systemic problems in the defense-industrial sector, including outdated production facilities, reliance on imported components, insufficient research and development funding, personnel shortages, and poor integration into global supply chains. SWOT and PEST analyses were conducted to define the sector’s internal strengths and weaknesses, as well as external opportunities and threats shaped by political, economic, social, and technological factors. Strengths include a high level of engineering competence, enterprises with full production cycles, manufacturing flexibility, and growing international military-technical cooperation. Opportunities include expanding export markets, localizing production, attracting foreign investment, and accessing advanced technologies. The main threats include the destruction of production capacities due to warfare, global competition, political instability in partner countries, and sanctions-related restrictions.

Conclusions. It can be concluded that Ukraine’s defense-industrial complex is undergoing accelerated modernization and demonstrating significant potential for innovation. Realizing this potential requires a balanced combination of state support, effective public-private partnerships, international cooperation, and institutional reforms. Implementing these measures will strengthen national defense capabilities, promote sustainable economic development, and ensure Ukraine’s integration into the global security architecture.

Keywords: defense-industrial complex; national security; defense industry; public-private partnership; defense expenditures.

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