The definition of a country's defence industry reflects its characteristics and importance for national security. In the context of Ukraine, the defence industry includes a wide range of enterprises and organizations that play a key role in meeting the country's military and technical needs. This industry is distinguished from other sectors of the national economy by its specificity and specialization. It ensures the production and development of military equipment, weapons and other important components of the country's defence. Given that the defence industry is one of the most important public goods, the state acts as the main customer for the sector's products, as private entities are not always ready or able to provide funding for large-scale defence projects. Ukraine's defence industry is of paramount importance for the country's security and defence needs. It has an integrated structure that includes participation in military-technical cooperation with other countries, implementation of the state defence policy, and has the potential for mobilisation tasks if necessary. The technical equipment of the Armed Forces and the state of the defence industry have deteriorated since Ukraine's independence. This is a serious problem that affects the country's national security. The low effectiveness of reforming and developing the Armed Forces of Ukraine, developing weapons and military equipment, and the defence industry may be due to various factors. One of the possible reasons is the lack of funds, which can indeed be a serious constraint on the implementation of defence industry development programmes. Without sufficient funding, it is difficult to make the necessary investments in the development and modernisation of the Armed Forces and the defence industry. In this situation, it is important to analyse the causes of these problems and develop a comprehensive action plan to address them. This may include not only attracting additional financial resources, but also improving the quality of strategic planning, enhancing the methodology of work and strengthening coordination between agencies. In general, Ukraine's defence industry plays an important role in ensuring national security and is one of the key components of the country's defence industry.
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Nikitchenko et al. (2024) studied this question.
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