Opinion: Ukraine is emerging as a global leader in defense technology.

      The large-scale war has changed the priorities of Ukraine’s technology sector. Cutting-edge military technologies and sophisticated defense solutions are crucial not just for the nation’s security but also serve as promising avenues for business expansion. Ukrainian defense technology undergoes testing directly on the battlefield, under the most difficult circumstances, allowing products to demonstrate their effectiveness and garner interest from international partners, investors, and allied nations eager to enhance their own defense capabilities.

      From my vantage point within Ukraine’s tech ecosystem, I have witnessed the swift pivot of the sector toward defense and the surge of global attention on our innovations. The urgency to counter significant Russian aggression has ignited a technological surge in the defense tech arena. Numerous young startups have emerged, drawing interest from both domestic and foreign investors. More than 30 nations have already shown interest in Ukrainian defense innovations, indicating a robust export potential for locally developed technologies.

      Since the onset of the full-scale invasion in February 2022, Ukraine’s drone industry has evolved from small volunteer efforts into a well-organized and competitive field. A report by DataDriven indicates that drone production skyrocketed from 5,000 units in 2022 to 4,000,000 by the end of 2024, signifying an 800-fold increase. Currently, there are over 500 active drone manufacturers in the country and more than 1,000 drone models, with four firms controlling 80% of the FPV drone market. In 2024, investments in the drone industry surpassed $60 million, with seed funding rounds usually falling between $1 million and $3 million.

      Since its launch in March 2023, the state defense technology cluster Brave1 has recorded over 4,600 innovations from more than 2,100 developers. Its members focus on strike systems, UAVs, ammunition, and advanced solutions for tasks such as reconnaissance, cybersecurity, and demining. The cluster has distributed over 600 grants totaling more than $52.4 million, effectively acting as the largest angel investor for Ukrainian defense innovations. Technologies developed with Brave1’s backing, like trench electronic warfare systems, interceptor drones, and logistic unmanned ground vehicles (UGVs), are actively influencing the course of the war. Brave1 also supports NATO-standard codification, battlefield testing, and integration into the Armed Forces.

      Research conducted by the Kyiv School of Economics and Brave1 reveals that investments in Ukraine’s defense tech sector climbed from $5 million in 2023 to $50 million in 2024, with the average investment size increasing from $500,000 to between $1 million and $3 million. The sector’s profit margin stands at 25%, the highest in the world—compared to 17% in NATO countries and 15% in the EU—highlighting the economic appeal of Ukrainian defense technology.

      Ukraine’s swift ascent as a global powerhouse in defense technology is not occurring in isolation. Innovative breakthroughs and successful startups require platforms to showcase their solutions, engage with investors, and scale internationally. This is where IT Arena in Lviv—Ukraine’s largest tech event—plays a vital role.

      This year, IT Arena will take place from September 26 to 28, bringing together over 6,000 participants from 30 nations. The centerpiece of the event is the Startup Competition, the country’s flagship startup contest and a major showcase for cutting-edge innovation, including in defense technology. Many of the defense solutions presented at the event were developed in response to urgent needs arising during the full-scale war. Recognizing their importance, IT Arena introduced a dedicated defense tech category, providing startups a platform to present their projects, secure funding, and scale on a global level.

      Participants have a unique opportunity to connect with venture capital firms, business angels, and international investors, bringing Ukraine’s battlefield-tested solutions to global markets. For the third consecutive year, the 2025 Startup Competition will feature two categories: general and defense, with the latter concentrating on defense tech and cybersecurity. The defense tech category remains the most competitive, with 52 applications submitted, demonstrating the increasing significance of security-driven innovation in Ukraine. A total of 202 applications were received from both Ukrainian and foreign teams, including startups from cities like Warsaw, Berlin, Tallinn, Kaunas, Minnesota, Boston, Dundee, and Hong Kong.

      With such a varied array of participants, the Startup Competition has also become a significant attraction for investors. This year, its investment fund reached a record $12.5 million, offering significant growth opportunities for startups. In 2024, participants raised over $2 million, showcasing the event’s role as a bridge between Ukrainian innovators and global financiers. One notable example is Hard Cat Drones, a startup creating unmanned systems for river and maritime activities. Its kamikaze and reconnaissance drones, tested by the Armed Forces of Ukraine, garnered strategic investment from Double Tap Investments after being featured at IT Arena 2024.

      The competition attracts a diverse array of investors, from local funds to international venture