“The Lviv technical cluster unites more than 65 companies engaged in development in the technological spheres. Why is it important to develop defense tech?”, — write: epravda.com.ua
The war presented Ukraine with unprecedented challenges, but at the same time it became a catalyst for the rapid development of industries that had previously remained in the shadows. One of these is defense tech – the sector of military and defense technologies. Over the past three years, Ukraine has turned into a real “startup country”. Until recently, small groups that worked in garages or small offices have transformed into ambitious companies with teams of hundreds of specialists. Their ideas are not on paper or in prototypes, but are implemented, often in record time. Sometimes only a few days pass from the concept to the finished product, which is put into service or goes into serial production. Lviv contributes to this process by forming an innovation ecosystem. The city creates conditions in which innovative ideas are not only born, but also become part of the strategic development of the city. For example, the Lviv Tech Cluster is successfully operating in Lviv, which unites more than 65 companies engaged in such developments.Advertisement: Why defense tech is a strategically important industry The military technology sector in Ukraine has become a catalyst for innovative development. The focus is on light weapons: drones, electronic warfare (EW), robotics and software. These directions are not only strategically important, but also attractive due to relatively low start-up costs, a wide client base and the ability to quickly adapt to changes. According to DataDriven, in 2023 the market for defense technologies grew by more than 100%, reaching $400 million. More than 300 companies work in the following key segments: 19% – drones, 13% – robotics, 13% – artificial intelligence. Read also: Cheap and risky. Why Western funds do not invest in Ukrainian miltech startups Advertisement: The growth of defense tech is confirmed by the figures released by the Ministry of Defense: in 2024, more than 900 new models of equipment and weapons were adopted, and 30% of the equipment used by the military was produced in Ukraine. Ukrainian startups compete with leading global manufacturers. Their products are not just innovative solutions, but technologies tested in real combat conditions. It is this unique experience that becomes a decisive factor for the growth of the export potential of Ukrainian developments. Why investments in defense tech are profitable Some ask: “Is it worth investing in defense technologies?”. The reality is that every hryvnia invested in defense tech is returned to the budget through taxes, job creation and development of the local economy. These investments not only help protect our country, but also form the foundation of the future economy. Successful Ukrainian companies gain powerful export potential, and products marked “Made in Ukraine” become competitive on the world market. The Lviv City Council clearly understands that defense technologies are a contribution not only to victory, but also to the future economic stability of the city. How Lviv supports defense startups The city has introduced several important grant programs to support defense tech companies. The City Council contributes to the development of the defense sector by supporting startups working for the victory of Ukraine. The results of this support are already visible: the serial production of tactical vehicles, the development of advanced UAVs, communication systems and robotics. Lviv helps turn innovative ideas into real products for the defense of our country. To do this, we have created three key grant programs. The first is grants for dual-purpose projects (supporting the operational activities of companies): financing the purchase of equipment, raw materials, software, and real estate for production needs. The maximum amount is 300,000. UAH The second is grants for the development of UAVs/UAVs for their scaling: support for production, transfer of products to the military. The maximum amount is UAH 1 million. The third is grants for innovations in the field of defense tech: investments in the creation of EW systems, medical devices, and communication systems. The maximum amount is UAH 2 million. In 2024, Lviv supported 69 enterprises for a total of UAH 50.5 million. In 2025, even more is planned to stimulate new projects. Ukraine has every chance to become a leader in the field of military technology. Products created with the “made in Ukraine” label are already in demand, and may conquer new markets in the future. The country is turning into a hub of military innovation. The next step is to turn these achievements into global victories.