DEVELOPMENT OF PROPOSALS REGARDING THE CORPORATION OF DEFENSE ENTERPRISES

Abstract

In this work, he problem of developing Ukraine's defense industry complex (DIC) is examined, which is not only related to insufficient funding but also to methodological gaps in managing and implementing defense policy. The analysis of recent studies indicates the urgent need for the corporatization of defense enterprises, which could enhance their efficiency and competitiveness. The author proposes a systematic approach to reform, emphasizing the importance of integrating modern management and economic practices to overcome existing challenges and achieve the self-sufficiency of the sector. It is highlighted that in the defense industry, it is essential to find other effective factors that can, on one hand, resolve the existing issues of market organization for economic entities and irrevocably set it on market tracks, and on the other hand, create undeniable preconditions for forming the organizational structure of the domestic defense industry complex and the system of state management that align with market principles. To address contradictions and create appropriate conditions for reforming the defense industry complex, some amendments to existing legislation regarding DIC enterprises are proposed based on three scenarios, analyzing their main advantages and disadvantages. It is suggested to establish a fundamentally new organizational structure for the domestic defense industry complex and a system of state management, which can be decisively achieved by transitioning defense enterprises to a joint-stock organizational and legal form.