Mechanical engineering as a strategic industry in Ukraine: problems, solution strategies

Abstract

The Ukrainian mechanical engineering sector is confronted with a multitude of formidable challenges that have placed its sustained growth and development in jeopardy. The industry had to function during martial law, a geopolitical crisis that cast a shadow of uncertainty over the entire region. Internally, the industry has faced longstanding issues that demand resolution. Inadequate investments have hindered the sector's ability to modernize and compete on a global scale. Technological deficits, reflective of a lack of state-of-the-art infrastructure and innovation, have further stymied progress. This dearth of technological advancement has led to low levels of innovation, rendering the sector less competitive on the international stage. The overarching purpose of this research is to delve into these multifaceted challenges and opportunities that define Ukraine's mechanical engineering sector. The results of this study highlight the positive impact of implementing economic measures such as lending programs and incentives on the competitiveness of the mechanical engineering sector. Furthermore, the results underscore the significance of going beyond mere formal production localization. The focus should instead be on enhancing the technical quality and innovation of products to remain globally competitive. In conclusion, addressing the manifold challenges confronting Ukrainian mechanical engineering necessitates a holistic and multi-pronged approach. The industry must actively pursue the implementation of a robust protectionist policy to shield and support its growth. Prioritizing innovation and modernization is another key component. Encouraging import substitution and expanding the export of engineering products are critical to ensure resilience and growth. Emphasizing the improvement of product quality and fostering innovation should be the linchpin of any localization strategy. By rigorously addressing these challenges, Ukraine's mechanical engineering industry can enhance its competitiveness, and chart a course toward sustainable growth. and development.