An event that is increasingly shaping the future of Ukraine’s economy took place at the office of the Union of Ukrainian Entrepreneurs — a roundtable discussion titled: “Business Innovation in Wartime: Challenges, Solutions, and Opportunities for International Cooperation.”
The event brought together representatives of business and government. The focus was on the experience of the Ukrainian private sector in implementing innovations, developing production during the war, identifying key barriers, and exploring opportunities for cooperation with international partners.
The discussion was initiated as part of the project “Strengthening the Voice of the Ukrainian Private Sector” in partnership with CASE Ukraine and supported by the Center for International Private Enterprise (CIPE).
An Imbalance Driving Change
One of the key topics was the transformation of Ukrainian exports. According to Vitalii Kyslenko, a board member of the Export Credit Agency, Ukraine’s exports last year totaled around $40 billion, while imports reached $85 billion.
This gap creates pressure on the currency market and highlights the need to shift the economy.
“Half of our exports are raw materials. The task of both the state and business is to sell less, but at a higher value — to move toward products with added value,” he emphasized.
The Export Credit Agency plays an important role in reducing export barriers by providing comprehensive support, including:
- insurance of export contracts and receivables
- coverage of war, political, and economic risks
- support for bank financing
- insurance of export-related investments
“Even during the war, we can cover risks that previously seemed critical. This opens new opportunities for businesses to enter new markets,” Kyslenko noted.
New Rules in Global Markets
Participants agreed that Ukrainian companies already have a unique competitive advantage — experience of operating in crisis conditions. This is especially relevant for technology sectors, including IT and defense tech, where demand for Ukrainian solutions is rapidly growing.
At the same time, entering new markets requires not only a strong product but also trust. Financial tools such as guarantees, insurance, and partnerships with international banks play a key role here.
Defense Tech: Private Initiative Changing the Rules of the Game
A separate part of the discussion focused on security innovations. Yevhen Shevchenko, Director of Innovative Security Complexes, presented a case that is becoming a new trend.
The project “Kupol” is a local multi-level air defense system developed by a private company. For the first time in Ukraine, a business received permission from the Ministry of Defense to deploy such solutions.
This is not only a technological breakthrough but also a sign of the growing role of the private sector in national defense.
At the same time, the case revealed several systemic challenges:
- legal restrictions on the use of weapons by private companies
- limited access to technologies and components
- lack of updated regulations adapted to new realities
Defense Tech Exports: From Taboo to Opportunity
Just a few years ago, exporting defense products was almost impossible. Today, it is gradually becoming part of Ukraine’s new economic strategy.
Despite existing export mechanisms, companies still face complex approval procedures that limit scaling.
However, demand for Ukrainian technologies abroad is growing. Ukrainian companies are already competing in international markets, and interest from foreign partners confirms the high quality of their solutions.
Due to the lack of a systematic export approach, businesses are exploring alternative models — such as opening production abroad or working through partnerships.
Three Drivers of Ukrainian Innovation
Participants identified three key factors behind the rapid development of innovation in Ukraine:
- a strong technical education system and human capital
- concentration of resources in critical sectors
- the war itself as a catalyst for fast decisions and technological breakthroughs
This combination has created a unique environment where innovation is no longer optional — it is essential for survival.
Balancing State and Business Interests
Participants emphasized the need to balance national security and private sector development.
While the state protects technologies as strategic assets, it must also create conditions for companies to grow.
Without access to markets and capital, businesses risk losing stability — and with it, their ability to invest in new developments.
Creation of a Defense Committee
As a result of the meeting, participants discussed the creation of a dedicated Defense Committee within the Union of Ukrainian Entrepreneurs.
The committee aims to unite member companies working in the defense sector and create a platform for developing and promoting initiatives important for the industry.
Its focus areas include:
- identifying key challenges faced by defense businesses
- developing joint solutions
- contributing to legislation and regulatory improvements
- improving the business climate in the defense sector
All SUP member companies operating in this field are invited to join and actively contribute to shaping solutions and policy changes.
If you would like to join the Committee, please fill out the form or contact Kateryna Yakymenko, Analyst at the SUP Analytical Center, at analytics@sup.org.ua