Archive Issue
International Interdisciplinary Scientific Journal "Expert"
Volume 2, Issue 1 (2025)
Language of the original article: English
ABSTRACT. The article examines the features of modernization and growth in Ukraine’s strategic industrial sectors and identifies promising directions for their development. The authors analyze the consequences of the full-scale invasion for Ukraine’s real economy, which manifested in significant losses of production capacities, destruction of logistics chains, and a reduction in the sector’s share of GDP. The necessity of transitioning from a raw-material-based development model, reliant on resource advantages, to a structural transformation grounded in innovation is substantiated. Based on the analysis of the experience of developed countries (the USA, the EU) and the “Asian Tigers,” the article highlights the importance of state policies aimed at targeted support for a narrow set of strategic sectors (semiconductors, biotechnology, microelectronics) as a key factor for economic growth. It is demonstrated that Ukraine’s attempts to define priorities were too broad, indicating the absence of a clear industrial strategy and leading to underutilization of its resource potential. At the same time, the article emphasizes the pivotal role of digital transformation as a driver of recovery. EU financial instruments (“Digital Europe,” Ukraine Facility, CEF) and national initiatives (“Community 4.0”) are examined as mechanisms supporting Ukraine’s integration into the European digital market, the development of 5G infrastructure, and the strengthening of cybersecurity even under wartime conditions. The study argues that a post-war growth strategy should combine macroeconomic stabilization measures with structural reforms focused on job creation. Priorities include the development of the defense-industrial complex, localization of production, energy security, and technological modernization of industry based on the principles of sustainable development and the circular economy. The article stresses that the success of transformation depends on systematic state policy, institutional maturity, and effective use of international assistance.
Keywords: Industrial policy, post-war recovery, structural transformation, strategic sectors, digital transformation, innovative development, defense-industrial complex (DIC), European integration, macroeconomic stabilization.
2. Savitskyi, O. (2022). Restore and modernize destroyed factories: What Ukraine’s “green” industrial revolution could look like. Ekonomichna Pravda. Available at: https://www.epravda.com.ua/publications/2022/12/15/695025/ [in Ukrainian].
3. Kysylevskyi, D. (2022). The state must make industrial development a priority. GMK Center. Available at: https://gmk.center/ua/opinion/derzhava-maie-zrobiti-rozvitok-promislovosti-prioritetom/ [in Ukrainian].
4. Kyiv School of Economics. (2023). Total direct damage caused to Ukraine’s infrastructure by the war reaches USD 151.2 billion: Assessment as of September 1, 2023. Kyiv School of Economics. Available at: https://kse.ua/ua/about-the-school/news/zagalna-suma-pryamih-zbitkiv-zavdana-infrastrukturi-ukrayini-cherez-viynu-syagaye-151-2-mlrd-otsinka-stanom-na-1-veresnya-2023-roku/ [in Ukrainian].
5. State Service of Geology and Subsoil of Ukraine. (n.d.). Investment atlas of subsoil users. State Service of Geology and Subsoil of Ukraine. Available at: https://www.geo.gov.ua/; https://www.kmu.gov.ua/storage/app/sites/1/17-prezentation-2019/12.2019/investatlass.pdf [in Ukrainian].
6. SocialBoost. (2023). Digitalization for recovery: How participants of the “Hromada 4.0” program are shaping the future of the country. Electronic governance. Available at: https://decentralization.gov.ua/news/17328?page=123 [in Ukrainian].
7. European Commission. (n.d.). The Ukraine Facility: Supporting Ukraine’s recovery, reconstruction, and path towards EU accession. European Commission. Available at: https://commission.europa.eu/topics/eu-solidarity-ukraine/eu-assistance-ukraine/ukraine-facility_en
8. Pavlovskyi, S. A., Mohylevska, O. Yu., & Rebryna, A. M. (2025). Sustainable development and capitalization of innovative entrepreneurship under public–private partnership conditions. In Sustainable development of economy, society and entrepreneurship: Proceedings of the II International Scientific and Practical Conference (Ivano-Frankivsk, April 10–11, 2025, pp. 307–309). Ivano-Frankivsk National Technical University of Oil and Gas. Available at: https://drive.google.com/file/d/1fto4k3riTnCH-hrIDDTAk6DSPUy8pD_z/view [in Ukrainian].
9. European Commission. (2021). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Updating the 2020 new industrial strategy: Building a stronger single market for Europe’s recovery (COM(2021) 350 final). Brussels, May 5. Available at: https://data.consilium.europa.eu/doc/document/ST-8553-2021-INIT/en/pdf
10. Birdsall, N. M., Campos, J. E. L., Kim, C.-S., Corden, W. M., Pack, H., Page, J., Sabor, R., & Stiglitz, J. E. (1993). The East Asian miracle: Economic growth and public policy (Vol. 1 of 2): Main report. World Bank; Oxford University Press. Available at: http://documents.worldbank.org/curated/en/975081468244550798
11. Kyiv National Economic University named after Vadym Hetman. (n.d.). [Institutional repository material]. Available at: https://ir.kneu.edu.ua/server/api/core/bitstreams/00a46bf2-38a6-4fe6-ad9b-7117ddd808a3/content [in Ukrainian].
12. Ministry of Digital Transformation of Ukraine. (2023). USAID allocates a USD 500,000 grant for the implementation of innovative projects in the field of cybersecurity. Press Office of the Ministry of Digital Transformation of Ukraine. Available at: https://thedigital.gov.ua/news/technologies/usaid-vidilyae-grant-500-000-na-vprovadzhennya-innovatsiynikh-proektiv-u-sferi-kiberbezpeki [in Ukrainian].
13. European Commission. (2022). Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: Towards a green, digital and resilient economy: Our European growth model (COM(2022) 83 final). Brussels, March 2. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX%3A52022DC0083
14. EU–Ukraine Association Platform (EUUA). (2024). Report on the implementation of the EU–Ukraine Association Agreement for 2023. EU–Ukraine Association Platform. Available at: https://eu-ua.kmu.gov.ua/en/news/opublikovano-zvit-pro-vykonannya-ugody-pro-asotsiatsiyu-mizh-ukrayinoyu-ta-yes-za-2023-rik/ [in Ukrainian].
15. Ukrainian Institute for International Politics. (n.d.). Ukraine will participate in the EU programme “Digital Europe”: What does it provide for? Ukrainian Institute for International Politics. Available at: https://www.uiip.org.ua/uk/novyny/ukraina-bratyme-uchast-u-prohrami-yes-tsyfrova-yevropa-shcho-tse-peredbachaie [in Ukrainian].
ABSTRACT. The article examines the features of modernization and growth in Ukraine’s strategic industrial sectors and identifies promising directions for their development. The authors analyze the consequences of the full-scale invasion for Ukraine’s real economy, which manifested in significant losses of production capacities, destruction of logistics chains, and a reduction in the sector’s share of GDP. The necessity of transitioning from a raw-material-based development model, reliant on resource advantages, to a structural transformation grounded in innovation is substantiated. Based on the analysis of the experience of developed countries (the USA, the EU) and the “Asian Tigers,” the article highlights the importance of state policies aimed at targeted support for a narrow set of strategic sectors (semiconductors, biotechnology, microelectronics) as a key factor for economic growth. It is demonstrated that Ukraine’s attempts to define priorities were too broad, indicating the absence of a clear industrial strategy and leading to underutilization of its resource potential. At the same time, the article emphasizes the pivotal role of digital transformation as a driver of recovery. EU financial instruments (“Digital Europe,” Ukraine Facility, CEF) and national initiatives (“Community 4.0”) are examined as mechanisms supporting Ukraine’s integration into the European digital market, the development of 5G infrastructure, and the strengthening of cybersecurity even under wartime conditions. The study argues that a post-war growth strategy should combine macroeconomic stabilization measures with structural reforms focused on job creation. Priorities include the development of the defense-industrial complex, localization of production, energy security, and technological modernization of industry based on the principles of sustainable development and the circular economy. The article stresses that the success of transformation depends on systematic state policy, institutional maturity, and effective use of international assistance.
Keywords: Industrial policy, post-war recovery, structural transformation, strategic sectors, digital transformation, innovative development, defense-industrial complex (DIC), European integration, macroeconomic stabilization.
References
1. Nebrat, V. V. (Ed.). (2023). Reconstruction for development: Foreign experience and Ukrainian perspectives. NAS of Ukraine, SI “Institute for Economics and Forecasting of the NAS of Ukraine”. Available at: http://ief.org.ua/wp-content/uploads/2023/08/Reconstruction-fordevelopment.pdf [in Ukrainian].
2. Savitskyi, O. (2022). Restore and modernize destroyed factories: What Ukraine’s “green” industrial revolution could look like. Ekonomichna Pravda. Available at: https://www.epravda.com.ua/publications/2022/12/15/695025/ [in Ukrainian].
3. Kysylevskyi, D. (2022). The state must make industrial development a priority. GMK Center. Available at: https://gmk.center/ua/opinion/derzhava-maie-zrobiti-rozvitok-promislovosti-prioritetom/ [in Ukrainian].
4. Kyiv School of Economics. (2023). Total direct damage caused to Ukraine’s infrastructure by the war reaches USD 151.2 billion: Assessment as of September 1, 2023. Kyiv School of Economics. Available at: https://kse.ua/ua/about-the-school/news/zagalna-suma-pryamih-zbitkiv-zavdana-infrastrukturi-ukrayini-cherez-viynu-syagaye-151-2-mlrd-otsinka-stanom-na-1-veresnya-2023-roku/ [in Ukrainian].
5. State Service of Geology and Subsoil of Ukraine. (n.d.). Investment atlas of subsoil users. State Service of Geology and Subsoil of Ukraine. Available at: https://www.geo.gov.ua/; https://www.kmu.gov.ua/storage/app/sites/1/17-prezentation-2019/12.2019/investatlass.pdf [in Ukrainian].
6. SocialBoost. (2023). Digitalization for recovery: How participants of the “Hromada 4.0” program are shaping the future of the country. Electronic governance. Available at: https://decentralization.gov.ua/news/17328?page=123 [in Ukrainian].
7. European Commission. (n.d.). The Ukraine Facility: Supporting Ukraine’s recovery, reconstruction, and path towards EU accession. European Commission. Available at: https://commission.europa.eu/topics/eu-solidarity-ukraine/eu-assistance-ukraine/ukraine-facility_en
8. Pavlovskyi, S. A., Mohylevska, O. Yu., & Rebryna, A. M. (2025). Sustainable development and capitalization of innovative entrepreneurship under public–private partnership conditions. In Sustainable development of economy, society and entrepreneurship: Proceedings of the II International Scientific and Practical Conference (Ivano-Frankivsk, April 10–11, 2025, pp. 307–309). Ivano-Frankivsk National Technical University of Oil and Gas. Available at: https://drive.google.com/file/d/1fto4k3riTnCH-hrIDDTAk6DSPUy8pD_z/view [in Ukrainian].
9. European Commission. (2021). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Updating the 2020 new industrial strategy: Building a stronger single market for Europe’s recovery (COM(2021) 350 final). Brussels, May 5. Available at: https://data.consilium.europa.eu/doc/document/ST-8553-2021-INIT/en/pdf
10. Birdsall, N. M., Campos, J. E. L., Kim, C.-S., Corden, W. M., Pack, H., Page, J., Sabor, R., & Stiglitz, J. E. (1993). The East Asian miracle: Economic growth and public policy (Vol. 1 of 2): Main report. World Bank; Oxford University Press. Available at: http://documents.worldbank.org/curated/en/975081468244550798
11. Kyiv National Economic University named after Vadym Hetman. (n.d.). [Institutional repository material]. Available at: https://ir.kneu.edu.ua/server/api/core/bitstreams/00a46bf2-38a6-4fe6-ad9b-7117ddd808a3/content [in Ukrainian].
12. Ministry of Digital Transformation of Ukraine. (2023). USAID allocates a USD 500,000 grant for the implementation of innovative projects in the field of cybersecurity. Press Office of the Ministry of Digital Transformation of Ukraine. Available at: https://thedigital.gov.ua/news/technologies/usaid-vidilyae-grant-500-000-na-vprovadzhennya-innovatsiynikh-proektiv-u-sferi-kiberbezpeki [in Ukrainian].
13. European Commission. (2022). Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: Towards a green, digital and resilient economy: Our European growth model (COM(2022) 83 final). Brussels, March 2. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX%3A52022DC0083
14. EU–Ukraine Association Platform (EUUA). (2024). Report on the implementation of the EU–Ukraine Association Agreement for 2023. EU–Ukraine Association Platform. Available at: https://eu-ua.kmu.gov.ua/en/news/opublikovano-zvit-pro-vykonannya-ugody-pro-asotsiatsiyu-mizh-ukrayinoyu-ta-yes-za-2023-rik/ [in Ukrainian].
15. Ukrainian Institute for International Politics. (n.d.). Ukraine will participate in the EU programme “Digital Europe”: What does it provide for? Ukrainian Institute for International Politics. Available at: https://www.uiip.org.ua/uk/novyny/ukraina-bratyme-uchast-u-prohrami-yes-tsyfrova-yevropa-shcho-tse-peredbachaie [in Ukrainian].
© 2025 The Author(s)
This work is licensed under the Creative Commons Attribution 4.0 International (CC BY 4.0).
Pavlovskyi, S., Mohylevska, O., & Kopec, A. (2025). PROSPECTS FOR MODERNIZATION AND GROWTH OF STRATEGIC SECTORS OF UKRAINIAN INDUSTRY. International Interdisciplinary Scientific Journal “Expert”, 2(1), 54–61. https://doi.org/10.62034/2815-5300/2025-v2-i1-005
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Pavlovskyi, S., Mohylevska, O., & Kopec, A. (2025). PROSPECTS FOR MODERNIZATION AND GROWTH OF STRATEGIC SECTORS OF UKRAINIAN INDUSTRY. International Interdisciplinary Scientific Journal “Expert”, 2(1), 54–61. https://doi.org/10.62034/2815-5300/2025-v2-i1-005.
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