For a technological breakthrough in the production of Ukrainian drones, changes in state policy and investment support are necessary. The developers explained what is needed for the effective operation of this sphere at the stage of the war against Russia.
Points of attention
- Large-scale investments in deep technologies, stability, and safety of production are crucial for a technological breakthrough in Ukrainian drone production.
- Long-term contracts, available financing for localization, and protection of production facilities and suppliers are essential for stability and efficiency in drone production.
- The ability to see the planning horizon, support from the state, and a transparent competitive environment between manufacturers and customers are key factors in successful innovations in the defense industry.
What the state needs to do for a technological breakthrough in drone production
TechEx says that Ukraine must make large-scale investments in deep technologies, stability and safety of production, as well as exports in partnership with the EU.
Company representatives say that for stability and efficiency of production it is necessary to have:
long-term contracts — there should be government orders for years to come, so that it is possible to invest in automation, expansion of lines, and electronics production in Ukraine;
available funding for deep localization — we are talking about grants, soft loans that can help establish the production of high-tech components, in particular cameras, frame material, engines, and electronics;
protection of production facilities and suppliers — ensuring physical protection of production facilities, warehouses and R&D centers, as well as their dispersal across regions;
expanding cooperation with the EU and creating joint ventures.
Oleksiy Zhulinsky, head of fiber-optic drone manufacturer 3DTech, believes that a key factor in successful innovations in the defense industry is the ability for the manufacturer to see the planning horizon and feel support from the state.
In addition, quality development always requires investment of resources, time, and specialists. All this is possible only with long-term contracts that provide predictability and allow companies to invest in R&D.
It is important to create a transparent competitive environment between the manufacturer and the customer. Then the manufacturer will form its planning based on current orders, because now it is often necessary to work "for yesterday".
It is not necessarily about work on prepayment, however, the manufacturer must be sure that he has the order. A credit investment program would help to implement such contracts,
Zhulinsky calls the tax burden a separate problem. According to him, the Ukrainian manufacturer of drone components pays VAT, while imports from China do not.
Dmytro Babenko, co-founder of the drone manufacturer VYRIY, noted that first of all, the state needs to provide the right guidelines for manufacturers.
What is needed for Ukraine to start producing more drones, which are needed now and will change the course of the war, is to create a real market. The state is already doing this. The first step is to allow brigades to purchase products directly from manufacturers: the military will not buy what is not needed or does not work.
The second step, according to Dmytro, is the creation of DOT-Chain Defence. With the help of such a system, the military could independently choose what they need, and manufacturers, in turn, would have an incentive to make what the front needs, technologically improve products and increase their quantity.
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