Impact of martial law on public investment in innovation

The study aimed to examine the degree of influence of martial law on investment activity in innovative project development. The methodological approach was based on analysis, synthesis and generalisation. The study determined a significant negative impact of the introduction of martial law in Ukraine on the processes of attracting investment from the state in various innovative areas. The study determined that the most promising areas of investment during the introduction of martial law in the country are the agricultural sector and construction. The least promising areas of activity for potential investors are the information technology industry, as well as heat and power supply. In addition, government bonds are one of the most common areas of investment funds. Domestic government bonds in wartime should be addressed quite reliably because their profitability is guaranteed directly by the state. After the introduction of martial law in Ukraine, military bonds became widely popular. The study determined that the yield on such securities can reach 18.5% per annum. The study noted a substantial increase in state budget expenditures (from UAH 1,490,258.9 million in 2021 to UAH 4,486,682.7 million in 2024) with an increase in defence spending (from 8.6% in 2021 to 66.1% in 2025). All of this is occurring in the context of a growing state budget deficit during the martial law period. At the same time, a sharp decline in investment in innovation was noted in Ukraine due to a significant increase in the risk of loss of funds from potential investors as a result of the impossibility of implementing investment projects during the hostilities and the suspension or complete shutdown of business structures that were able to fully implement these projects before the war. The factors that influenced the possibility of attracting public investment in the field of innovation by the state during the war were identified to find ways to effectively implement innovative development measures after the end of hostilities