Economics of Development
Economics of Development
ISSN 1683-1942 e-ISSN 2304-6155 UDC 33
DOI: 10.63341/econ
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The impact of digital technologies on the defence economy of Ukraine in the context of economic challenges to cybersecurity

Oleh Semenenko, Oleksandr Kin, Oleksandr Zaitsev, Ivan Tkach, Vitalii Kuravskyi

Received 21.10.2024, Revised 31.01.2025, Accepted 25.03.2025

Abstract

The purpose of the study was to assess the impact of cybersecurity and a number of other non-military factors of countries’ resistance to threats on their defence capabilities and to characterise the factors that determine the level of cybersecurity. As a result, the state of digitalisation of the defence economy of Ukraine is characterised through qualitative and quantitative indicators, allowing for the substantial efforts of the state to implement digitalisation and ensure cybersecurity to be noted. It is established that the country’s cybersecurity level was lower than the global average, and the spending on digitalisation in the defence sector was only 0.16% of the total cost of the main areas. In the paper, it is noted that improving the level of cybersecurity in the context of the rapid introduction of digitalisation is a priority for ensuring defence capability because digitalisation creates new challenges for cybersecurity. This is confirmed by regression analysis, which identified a statistically substantial and negative impact of digitalisation and the level of human development on cybersecurity. In addition, the aspects of countries’ defence capabilities that are most affected by the level of cybersecurity are determined using regression analysis. It is discovered that the increase in the cybersecurity indicator per unit caused an increase in military strength by 0.354. Therefore, the impact of cybersecurity on defence economy can be considered substantial. Based on the results of the study, recommendations are formed for Ukraine on digitalisation of the defence economy and improving the level of cybersecurity. The results obtained can be useful for developing strategies to improve cybersecurity in the defence economy in the context of the rapid introduction of digitalisation


Keywords:

military strength; non-military threat resilience factors; human development level; global innovation index; costs

https://doi.org/10.63341/econ/1.2025.118

Retrieved from Volume 24, No. 1, 2025

Pages 118-131

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Suggested citation

Semenenko, O., Kin, O., Zaitsev, O., Tkach, I., & Kuravskyi, V. (2025). The impact of digital technologies on the defence economy of Ukraine in the context of economic challenges to cybersecurity. Economics of Development, 24(1), 118-131. https://doi.org/10.63341/econ/1.2025.118