THE ROLE OF INDUSTRIAL POLICY IN THE DEVELOPMENT OF THE STATE'S DEFENCE INDUSTRY: INTERNATIONAL LEGAL AND ECONOMIC REGULATION

Abstract

Industrial policy is a critical element that determines the development of economic sectors, including the defence industry. In today's context of growing geopolitical tensions, technological progress and globalisation, effective functioning and development of the defence industry is highly relevant. The purpose of the work is to investigate the role of industrial policy in the formation of the most effective strategies and approaches to the development of the defence-industrial complex and the possibility of their adaptation in Ukraine. The study was conducted using comparative, systemic and SWOT analyses. The results showed that each country under consideration – the United States, France and China – has unique opportunities for developing the defence industry but also faces specific threats. The defence industry of these countries is a complex system that encompasses big corporations, research institutions, and government agencies. All of them receive considerable funding from the state budget, invest in research and development, and collaborate with international partners, which allows their products to be of high quality and innovativeness. The USA has the largest defence budget and significant technological capabilities but depends on political decisions and high costs. France has a solid technical base but faces limited budgetary resources and dependence on European politics. China is showing a significant increase in its defence budget, but limited international cooperation is hindering the stable development of its defence industry. The findings show that a balanced industrial policy that combines economic and international legal aspects is the key to creating a sustainable and competitive defence industry. Further research in this area will help find more effective strategies for developing the defence industry and enhancing national security and economic stability.