Received: 2020-03-15  |  Accepted: 2020-12-10  |  Published: 2021-03-30


The role of a defence industry in the system of national security: a case study


It was determined that the existing scientific and methodological approaches to the assessment of the state of financial security of defence industry enterprises due to the specific peculiarities of this industry and the rapid changes in their external environment, currently taking place, need both the advancement in the direction of improving the level of timeliness of such assessment and expansion of the indicators list for its implementation. In the light of modern conditions, characterized by globalization and increased competition in the domestic and foreign arms markets, the defence enterprises can be competitive if they can adapt their activity effectively to the changes in the external environment, take timely preventive measures against the impact of negative environmental factors and make timely use of the opportunities, provided by the environment for strengthening of their financial security. In the research, the authors have improved scientific and methodological approaches to the complex assessment of financial security of defence enterprises – conduction of the analysis upon 3 blocks: definition of the indicators system (including the one upon the criterion of the enterprise’s relations state with the subjects of the external environment; express diagnostics of the enterprise’s financial security; a full-blown assessment of the financial security of the enterprise, which makes it possible to provide operational efficiency during substantiation of the administrative decisions, concerning the provision of financial security of the enterprises and consider the change of conditions of their interaction with subjects of the external environment. The development of the integration processes in the global economy, in particular defence industries, and the steady increase in competition on the global arms market, provides importers of arms and military equipment (AME) with a diverse choice of means of pressure on the exporters, directly encourage the application of the offset practices in this area. The research determines the ways and priorities of application of the offset activity by defence enterprises of Ukraine in the context of consideration of this phenomenon as a tool for strengthening their financial security thanks to the optimization of expenditures for implementation of the export-import operations and research, development, and engineering activity (RD&T).


national security, financial security, defence industry, offset activity, express diagnostics, Ukraine

JEL classifications

F35 , F42






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Ilchenko, Oleksandr
Sumy State University, Sumy, Ukraine
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Brusakova, Oksana
Kharkiv National University of Internal Affairs, Kharkiv, Ukraine
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Burchenko, Yuliia
National University of Water and Environmental Engineering, Rivne, Ukraine
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Yaroshenko, Artem
Dnipropetrovsk State University of Internal Affairs, Dnipropetrovsk, Ukraine
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Bagan, Yaroslav
Law firm "Ex Jure", Lviv, Ukraine
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Journal title

Entrepreneurship and Sustainability Issues





Issue date

March 2021

Issue DOI


ISSN 2345-0282 (online)


VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania


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