Ukraine loses defense innovations due to ineffective protection of intellectual property – Economic Security Council of Ukraine
26 November 2025 14:37
Ukraine is losing defense innovations due to ineffective protection of intellectual property rights in the defense technology sector, according to a report by the Economic Security Council of Ukraine (ESCU), "Komersant Ukrainian" reports.
The existing regulatory mechanisms often do not take into account the specifics of modern technological processes, which is why innovators lack incentives for development. This weakens Ukraine’s positioning as a reliable partner in international defense projects.
“Although our technologies have been proven in battle, they will not receive billions of dollars in investment and scale until there is an effective system of intellectual property protection. Already, a third of defense industry manufacturers have relocated their enterprises abroad. It is not only about economic losses, but also about a direct threat to the country in a technological war of attrition,” warned Oleksandra Azarkhina, Head of Defense Industries Development at the Economic Security Council of Ukraine, during the presentation of the study.
Due to the lack of a unified approach to intellectual property, some developers are already registering patents in the United States or the EU. As a result, technologies created in Ukraine become the property of other states, and tax revenues go abroad.
“Ukraine has the potential to become one of the leaders in the global defense market, but exports are impossible without a clear definition of development rights. Innovations come at an extremely high price for our country, and we cannot afford to lose them,” said Sergiy Goncharov, Executive Director of NAUDI, during the event.
The intellectual property conditions in the contracts of the Ministry of Defense are different or absent every time, which leads to a systemic failure when the state cannot quickly scale successful military developments, according to a report by the Economic Security Council of Ukraine. At the same time, businesses are afraid to invest in new technologies, risking losing the rights to their own innovations.
“For Western partners, reliable protection is not a formal requirement, but a key condition for technology transfer and joint production. Without this, we will not be able to access critical foreign developments that we need to win,” added Ihor Fomenko, Chairman of the Board of FRU Defence.
The optimal model for Ukraine should be a governance model that ensures industrial competitiveness and secure integration into Euro-Atlantic structures. Analysts of the Economic Security Council of Ukraine suggest borrowing from the EU a market-based approach to stimulating innovation, contractual discipline, and clarity in defining intellectual property. From NATO, they suggest protecting sensitive technologies, unlimited government rights to use them, and ensuring compatibility with export control regulations.
“Ukrainian intellectual property regulations do not meet the current market needs, so companies are increasingly looking to predictable international protection mechanisms. We have a dual task – to help manufacturers protect their developments in Ukraine and to prepare them for compliance with international standards,” explained Anna Zarudna, Head of Government Relations at the Technological Forces of Ukraine.
Read the roadmap of necessary changes for effective protection of intellectual property rights in the defense technology sector in the full version of the study.
