Full-scale war has radically transformed Ukraine’s defense-industrial complex. Alongside large state-owned enterprises, hundreds of private companies, engineering teams, and startups have emerged, creating drones, robotic systems, communication systems, software, and other technologies for the front lines.
Ukraine has gained a unique advantage—the ability to quickly test new developments in real combat conditions. At the same time, the industry still faces challenges related to scaling up, dependence on imported components, unstable regulations, a lack of investment, and difficulties entering international markets.
UA. News spoke with Denys Sviatokum—chairman of the board of the Ukrainian Dual-Use Technologies Cluster, board member and chairman of the committee on international cooperation and strategic partnerships at the Ukrainian Employers’ Federation “Defense,” and chairman of the investment committee of the InvestHub private investors’ club.
From Entrepreneurship to Defense Technologies
Denys Sviatokum has been involved in entrepreneurship, business development, investments, and launching new projects for over 15 years. Today, he sees his main mission as bringing together his accumulated experience, international contacts, and the entrepreneurial community to support the development of Ukraine’s security and defense sector.
“I’m trying to combine all my skills, background, and interests in a way that will help realize both personal and national potential. I have an extensive entrepreneurial network and contacts with proactive Ukrainians around the world. Many of them are currently involved, in one way or another, in strengthening Ukraine’s defense capabilities,” Svyatokum said.
According to him, Ukrainian defense companies today need more than just domestic support. They must become part of international production, technology, and investment chains.
“Ukraine’s strategic success depends on how quickly and freely we can integrate into global value chains in technology and innovation. We need to combine Ukrainian innovations with the capital and technological approaches of partners with whom we share democratic values,” the expert explained.
Svyatokum’s direct path to miltech began while he was studying in the “School of Ministers” program at the Kyiv School of Public Administration. Participants were tasked with preparing a reform project that could be implemented at the national level.
Svyatokum worked on the concept of an R&D hub designed to help Ukraine transition from exporting raw materials to creating and selling its own technological solutions.
“One of my mentors told me: if you’re looking for funding and investment, pay attention to the defense sector. That’s where attention, resources, and innovation are currently concentrated. I took that advice and began to delve deeper into the industry,” he recalled.
After the full-scale invasion began, many entrepreneurs he knew reoriented their civilian companies to meet the needs of the military. Some manufactured anti-tank spikes, while others supplied body armor, donated equipment and facilities, or recruited workers.
“There was a general mobilization of active entrepreneurs and a transfer of their resources from the civilian sector to the military. I realized that this was the core around which collaborations could be built. Many people were doing the same thing simultaneously. If we could bring them together into a community, they could exchange information, use resources more efficiently, and strengthen one another,” Svyatokum said.
This is how the idea for a specialized association arose, and later—the Ukrainian Dual-Use Technologies Cluster. One of its goals will be to help defense companies transition to civilian markets once the war ends.
The private defense industry is still taking shape
According to Denis Svyatokum, a robust private defense industry has already emerged in Ukraine, but it is too early to say that the process of its formation is complete.
The industry is constantly changing along with the situation on the battlefield. New solutions can render products that were recently launched into mass production obsolete in just a few weeks.
“The process is definitely ongoing. We are essentially shaping a new global security architecture, and this may take quite a long time. Innovations on the battlefield are constantly evolving. New companies and products are emerging that may prove to be better than solutions that went into production just yesterday,” the expert emphasized.
In the long run, this should lead to more active cooperation between companies, as well as mergers and acquisitions. Some companies will combine their production capabilities, engineering teams, and sales channels to scale up proven developments more quickly.
Ukraine’s main advantage is speed
Svyatokum cites the rapid cycle of technology development, testing, and refinement as a key advantage of the Ukrainian defense industry.
Ukrainian engineers can quickly deliver prototypes to the military, receive feedback directly from the front lines, make changes, and return the updated product to combat units.
“Our biggest advantage is the rapid integration, validation, and testing of various tools and products. Because of the war, some of the bureaucratic processes have become simpler, so we can more quickly determine which solutions are truly effective,” explained Sviatokum.
He describes access to combat testing as a unique resource that most Western defense companies lack.
“Rapid R&D, the ability to test “Our experience on the front lines and in practical application are our strengths. In addition, Ukrainian companies have become skilled at integrating various components and systems. Yesterday, a drone was a civilian product, but today, for relatively little money, it can destroy equipment worth millions,” the expert said.
A Weakness: Scaling Up Development
The speed of prototyping does not always translate into the ability to produce them in the tens or hundreds of thousands. Svyatokum considers scaling to be one of the main systemic problems facing the Ukrainian defense industry.
According to him, some developers try to maintain complete control over their own product and are afraid to transfer the technology to manufacturing partners.
“Everyone wants to remain the owner of their unique product and worries that tomorrow something will be stolen or taken from them. Because of this, I don’t see rapid scaling happening just yet,” he said.
The situation is complicated by the fact that different teams are working in parallel on similar solutions, copying certain approaches, or trying to stay ahead of the competition.
At the same time, such competition does not always lead to effective cooperation, the consolidation of production capacities, or product standardization.
Technological demand arises directly on the front lines
In an ideal model, it is the Armed Forces that should consolidate the needs of the units and determine technological priorities, while the Ministry of Defense should formulate policy and create incentives for manufacturers.
In practice, a significant portion of defense R&D in Ukraine has developed in a decentralized manner.
“The need arises on the front lines—from a soldier who needs to accomplish a specific task: defense, attack, reconnaissance, maneuvering, or something else. “Due to the human factor, different solutions may be proposed for the same need in different sectors of the front,” Svyatokum explained.
After the start of full-scale war, charitable foundations partially took on the role of funding defense research and development. At the same time, individual military units and brigades began to form their own engineering and innovation teams.
“These teams included scientists, entrepreneurs, and engineers who literally started creating new products on the fly. As a result, a so-called ‘drone zoo’ emerged, because each unit uses whatever is more convenient and effective for its specific area of operation,” the expert explained.
It is nearly impossible to quickly standardize all solutions under conditions of constantly changing tactics. However, in the future, large datasets and artificial intelligence tools may help consolidate information about the front lines’ needs.
From prototype to combat deployment—in just a few weeks
Svyatokum calls Ukraine’s defense product development and testing cycle one of the fastest in the world.
Specific timelines depend on the type of product, the complexity of the technology, and the procedures it must undergo. However, in some cases, only one to two weeks pass between the submission of a request and the first combat deployment.
“After that, it may take another two weeks or so for modification and about the same amount of time for contracting. Due to the challenges of war, the government is changing its regulatory approaches, and some individuals are actively advocating for the simplification of procedures,” the expert said.
Manufacturers are also trying to quickly modernize products that have already been approved for use. This applies particularly to software.
The company cannot supply a product with specifications inferior to those specified in the contract. At the same time, manufacturers often provide improved versions and software updates to the military free of charge, without changing the contract price.
If, however, the product is a fundamentally new module or a significantly modified product, it may first be tested with the support of a charitable foundation. For subsequent government contracting, such a product will still have to go through the required procedures.
Codification, Grants, and Decentralized Procurement
Among the government decisions most beneficial to the Ukrainian defense industry, Svyatokum cites the simplification of the codification of defense products, funding for new developments, and the expansion of decentralized procurement.
The ability of military units to independently purchase necessary equipment allows them to respond more quickly to local needs and shorten the path from manufacturer to end user.
“Decentralized procurement stimulates the development of the defense industry. There are centralized contracts, but at the same time, military units can independently procure what they need. This simplifies and streamlines the bureaucratic process,” noted Svyatokum.
He also considers the emergence of innovation centers within brigades to be a positive step. There, developments can be tested more quickly, and manufacturers receive relevant feedback to improve their products.
Brave1—a government initiative for the development of defense technologies that funds research and helps implement it in the security and defense sector—plays a special role in supporting defense startups.
Manufacturers are awaiting the opening of export markets
Svyatokum cites the further opening of exports of weapons and military technologies as one of the key decisions the private defense sector expects from the government.
The Ukrainian budget cannot fully fund all of the production and research capabilities of enterprises. As a result, some companies have idle capacity but do not receive a sufficient number of domestic orders.
“Opening up exports will boost the inflow of capital and investment. We will be able to sell products that may no longer be a priority for Ukraine but remain useful to other countries,” the expert explained.
Manufacturers could invest the additional revenue from foreign sales into new research, capacity expansion, and the localization of components.
At the same time, not all companies are truly ready for the international market. A formal declaration of readiness to export does not necessarily mean that a company has properly prepared technical documentation, a legal structure, certifications, and experience working with foreign regulators.
“When it comes to documentation and agreements, it will turn out that not everyone is ready. But the very launch of exports will serve as a signal that we need to invest in this area and prepare for it,” Svyatokum noted.
Frequent personnel changes create risks
An expert views the constant personnel reshuffles at the Ministry of Defense as largely negative.
According to him, the Ministry of Defense is a large organization with numerous departments, centers, and subordinate units. The new team will need a long time to understand the system and begin implementing changes.
“It takes at least half a year just for the new minister to understand what is going on, form a team, prepare changes, and begin implementing them. It’s impossible to change ministers every six months, because each time many processes have to be started almost from scratch,” Svyatokum emphasized.
Some of the work done by previous teams is successfully passed on to their successors. However, some projects are halted because they do not align with the new leadership’s vision or because their significance cannot be adequately explained in time.
Mykhailo Fedorov and a Possible Ukrainian Equivalent to DARPA
Separately, Denis Svyatokum highlighted the technological approach of Mykhailo Fedorov, who took the helm of the Ukrainian Ministry of Defense in January 2026.
“I consider him the most innovative defense minister in the history of independent Ukraine. He is a young, progressive person who is interested in technology. He has demonstrated this both in his previous position and now,” Svyatokum said.
Among the positive changes, he cites more open communication, faster feedback, digitization, the introduction of performance evaluation systems, and the gradual reduction of paper-based procedures.
“I’m not saying he’s the perfect minister or that there aren’t any nuances. But among the people who have headed the ministry, his team hasn’t yet been allowed to fully implement its stated goals. That’s exactly why I’ve taken the position that he shouldn’t be removed,” the expert explained.
Svyatokum takes a cautious view of the idea of creating a separate coordination center for defense technologies. The new structure will only make sense if it is granted real authority, funding, and clearly defined relationships with the Ministry of Defense, the General Staff, and other state institutions.
As a possible model, he cites the U.S. agency DARPA, which is involved in the funding and development of promising defense technologies.
“We’ve been talking about a Ukrainian DARPA since 2023. If the new center becomes the first step toward creating an institution that will truly accelerate defense innovation, it could be promising. Theoretically, anything is possible, but the practical outcome will depend on its authority and implementation,” Svyatokum concluded.
The rocket industry and space exploration require greater investment
Among the underfunded areas, the expert highlights rocket engineering.
Rocket development requires significant funding, a sophisticated manufacturing base, testing infrastructure, qualified specialists, and a considerable amount of time. That is precisely why Ukraine does not have dozens of private rocket companies capable of simultaneously implementing large-scale programs.
“Any rocket development requires very large investments and significant implementation timeframes. We need more money, resources, and people. The number of specialists is dwindling, so we also need to invest in their training,” Svyatokum said.
He cites space and satellite technologies as another strategic area.
In his view, Ukraine should seek both external and domestic funding to develop its own satellite system. This would reduce the country’s dependence on foreign intelligence data and commercial communications systems, including Starlink.
From a Combat Unit to Mass Production
The optimal cooperation model should begin with a military unit, which formulates a specific technical requirement.
The developer then looks for possible ways to meet the request, secures public or private funding, and provides the military with several prototypes.
“The military should issue technical requirements even if they initially seem unrealistic. The developer must find different solutions and submit them for testing as quickly as possible,” Sviatokum explained.
If the military confirms the product’s effectiveness, the developer should approach a manufacturing company capable of producing it in large quantities.
However, this is often precisely where problems arise.
“We have many so-called garage-based developers. They can create a working prototype, but they do not always know how to prepare the documentation and process sheets. Producing a single unit and manufacturing ten thousand identical products are entirely different processes,” the expert said.
Without complete documentation and standardized manufacturing processes, transferring a product to another company and quickly launching mass production is almost impossible.
Which Components Need to Be Localized
Ukraine’s defense-industrial complex still depends heavily on imported components. Companies are already localizing some products, but a complete transition to Ukrainian-made components will require time and substantial investment.
Sviatokum identifies chips, fiber-optic components, cameras, electronic circuit boards, communications systems, and electric motor components as the most critical categories.
“Motors are already being manufactured in Ukraine, but some of their parts are still purchased abroad. Localization is a continuous process of moving deeper into deep tech: from cameras and circuit boards to motors, chips, and additional electronics,” the expert said.
Foreign components are often purchased because of their lower price, availability, and faster delivery. Therefore, a Ukrainian alternative must not only be technologically sound but also economically competitive.
Not All Technologies Require Long-Term Contracts
Multi-year government orders allow manufacturers to plan their operations, invest in equipment, and hire personnel. However, in the field of rapidly evolving defense technologies, such contracts may create new problems.
“Some technological solutions may remain relevant for only three or four weeks. If a three-year contract is signed, the question arises: why continue producing something a year later if it no longer meets the needs of the front?” Sviatokum noted.
He considers a model more effective in which the state first verifies the manufacturer’s reliability and its financial and production capacity.
The company could then receive contracts for specific products more quickly, provided they meet current technical specifications. This would eliminate the need to reassess the company itself each time; it would be sufficient to verify the quality of the new product and its compliance with military requirements.
Foreign Investors Are Watching Ukrainian Defense Tech
According to Sviatokum, international investors remain highly interested in Ukrainian defense tech.
Funds are creating special programs, allocating resources, and seeking promising Ukrainian teams. However, dealmaking is being held back by an underdeveloped investment market.
“The whole world is watching Ukraine and trying to become part of this story. But investors often run into the fact that we still do not have a properly functioning investment market. As a result, we have to use convertible loans and other, more complex instruments, for example,” the expert explained.
Another problem is that some Ukrainian projects are not ready to meet Western requirements.
A team may have strong technology but lack the ability to present its business model, assess the market, prepare financial documentation, or explain its scaling strategy to an international investor.
Ukraine Can Offer Its Partners Combat Experience
International partners cannot always determine on their own which technologies will be in demand in the next major war. That is why they are closely following Ukraine’s experience.
“They are not fighting a war like this, so they look to us for guidance. Needs arise situationally, depending on how the front changes and which solutions prove effective,” Sviatokum said.
He considers Ukraine’s primary asset to be real-world combat experience, operational intelligence, and the ability to rapidly adapt equipment to new conditions.
Ground-based robotic systems, artificial intelligence, large-scale data analysis, and the integration of different types of unmanned systems have particularly strong potential.
“A promising direction is combining different products into a single solution. It is like a strategy computer game in which different units perform different tasks but are controlled simultaneously. That is how an integrated unmanned systems complex should operate,” the expert explained.
What Ukraine’s Defense Industry Could Become After the War
After hostilities end, it will be important for Ukraine not to lose the innovative potential it has accumulated.
According to Sviatokum, some companies created in response to wartime needs may be left without domestic orders. Their technologies will therefore need to be adapted for the civilian sector or international markets.
“We can become a global R&D center. Research and engineering work could be outsourced to us because we know how to implement, test, and integrate products quickly,” Sviatokum said.
In addition, Ukraine could become a major manufacturing hub for Western countries.
“We have sufficient expertise, manufacturing facilities, and experience. Ukraine could partially replace China’s manufacturing capacity for the Western world. This could also become one of our competitive advantages,” the expert said.
Which Technologies Will Shape Future Wars
Among the technologies of the future, Sviatokum points to autonomous unmanned systems capable of partially replacing humans in dangerous missions.
Exoskeletons and other systems that enhance soldiers’ physical capabilities could become an important transitional technology.
Artificial intelligence will have a distinct role, ranging from processing intelligence data to controlling large groups of unmanned systems.
“Artificial intelligence will enable large-scale control of drone swarms and optimize their operating algorithms. Space will also remain critically important, as it is impossible to gain an advantage in developing and deploying new systems without it,” Sviatokum stressed.
At the same time, granting artificial intelligence full autonomy requires clear limitations and carefully designed architecture.
“Artificial intelligence is a tool for accelerating innovation. But the system must be designed from the outset to be secure and controllable. Any uncontrolled technology can potentially be dangerous,” the expert explained.
This concerns not only protection against cyberattacks but also technical safeguards, control over access to data, the possibility of human intervention, and restrictions on independently making critical decisions.
“The State Must Not Interfere — and Must Listen”
Sviatokum identifies predictable government policy as the main prerequisite for the development of Ukraine’s defense-industrial complex.
Companies need to know that programs already launched will not be halted after the next personnel reshuffle and that operating rules will not change without warning.
“People often say the state must do something, but what it must do is avoid getting in the way. In my view, it should simply allow the work already underway to continue. Manufacturers need to see the prospects ahead and understand the direction of development,” Sviatokum concluded.
He considers equally important continuous communication among the state, the military, and private companies.
“The state must hear feedback from manufacturers and the military. It must know how to communicate, listen, take that feedback into account, and rapidly implement the necessary changes,” the expert concluded.
