EU INTEGRATION INSTRUMENTS FOR SUPPORTING THE INNOVATIVE DEVELOPMENT OF UKRAINIAN INDUSTRY
Abstract
The article presents a comprehensive analysis of the investment landscape and innovative potential of the Ukrainian industry in the context of the full-scale war and the deepening of European integration. Particular attention is paid to examining the mechanisms for transforming the industrial sector from a resource-based model to a high-technology one that meets European Union standards. The study is grounded in the analysis of up-to-date data from leading international institutions, including the OECD Economic Survey 2025, the World Bank RDNA4, and the Global Innovation Index 2025. The paper provides a detailed assessment of the direct losses suffered by Ukraine’s industrial sector and analyses reconstruction needs that require mobilising private capital through blended finance instruments. A separate section focuses on the successful participation of Ukrainian businesses in the Horizon Europe programme. Key challenges are identified, including wartime risks, human capital outflows, low integration into global value chains, and institutional weakness. The practical significance of the study lies in the development of a detailed roadmap for an innovation breakthrough. The recommendations include the establishment of cross-border industrial parks, the capitalisation of strategic raw materials (such as lithium and titanium) for the production of components for green energy technologies, and the implementation of the Triple Helix model. In particular, the paper proposes mechanisms such as innovation vouchers, the professionalization of technology transfer offices (TTOs), and the development of university spin-offs. The study emphasises that European integration is not only a political vector but also a unique window of opportunity for “Conversion 2.0” - the integration of Ukrainian MilTech innovations into civilian industry, enabling Ukraine to emerge as a security and technological hub of Europe. Furthermore, it highlights the importance of strengthening institutional quality, including intellectual property protection and corporate governance reforms, as critical preconditions for scaling innovation-driven investments in Ukraine.
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