PROBLEMS OF INVESTMENT AND INNOVATION DEVELOPMENT OF UKRAINE’S MARITIME INDUSTRY UNDER WARTIME CHALLENGES

Abstract

The article provides a comprehensive analysis of the problems and prospects of investment and innovation-driven development of capital-intensive industries in Ukraine under conditions of structural economic imbalances and wartime challenges, using the maritime sector as a case study. Particular attention is paid to the current state of shipbuilding, port infrastructure, maritime logistics, human capital formation, and financial and credit mechanisms supporting the industry. The study demonstrates that the dominance of short-term bank lending, combined with a fiscally oriented tax policy, significantly constrains the implementation of capital-intensive projects characterized by long production cycles. Such institutional settings increase the cost of capital, reduce investment horizons, and weaken incentives for technological modernization, especially in shipbuilding, port modernization, and related engineering industries. The research substantiates that indirect taxation mechanisms, including VAT on imported equipment and technologies, as well as advance profit tax payments and property taxes, may generate additional liquidity pressures for enterprises with extended production cycles. Although VAT is theoretically neutral and borne by the final consumer, in practice it often functions as a tax on working capital, freezing financial resources for prolonged periods. This effect is particularly detrimental for industries where production, construction, or infrastructure development projects last several years before revenue realization. To address these systemic constraints, the article proposes the concept of a “tax innovation multiplier” as an integrated policy framework aimed at stimulating long-term private investment. The model combines targeted tax incentives, R&D super-deductions, accelerated depreciation mechanisms, and innovation compensation tools to create a self-reinforcing cycle: public stimulus – private investment – technological upgrading – expansion of the tax base. The proposed approach emphasizes strategic alignment with EU integration processes, including participation in European green transition programs and maritime modernization initiatives. Overall, the study argues that a shift from a predominantly fiscal paradigm toward an investment-oriented tax architecture is essential for restoring competitiveness, ensuring structural resilience, and enabling sustainable growth of Ukraine’s maritime economy.