Khmara O. Development of international production networks of defense industrial bases in developed countries

The thesis is devoted to the definition of conceptual bases, institutional mechanisms, innovations, and investment parameters of international production networks in the defense-industrial complex of developed countries, as well as forms and preconditions of integration of Ukrainian companies into them. The stages of development of international production networks are singled out: internationalization, transnationalization of production and formation of contemporary networks. The grouping of theories that underlie the explanation of the IPN: the theory of international trade, the theory of chains, the theory of networks, the theory of MNE, the latest theories of international trade. The institutional structure of IPN in the defence sector is analyzed. It resembles a pyramid with a limited number of large system integrators, or "original equipment manufacturers", at the top, and an extensive supply chain with several tiers, consisting of medium and small companies. OEMs integrate components and subsystems manufactured by contractors. Innovative parameters of IPN are investigated. The peculiarities of financing the working and investment capital of companies at different levels of networks, which are determined by the specifics of how companies receive payments from their customers. The conclusion is reached regarding the potential of the Ukrainian defense industry for collaboration with international production networks of developed countries, particularly EU members and the United States.The Ukrainian defense industry can cooperate with IPNs in various ways, including: formation of joint production enterprises; subcontracting with foreign companies; issuance of direct labor orders to foreign companies; sale of equity in some Ukrainian defense companies; concession agreements with defense companies; lease of workshops and infrastructure of the enterprise of the defense industry of Ukraine for a period of up to 49 years; creation of consortia among several enterprises of the defense industry. Factors of Ukrainian defense sector disintegration with the CIS countries are revealed. In particular, there is the competition in the same geographic markets with military products, which is characterized by a high level of interchangeability; the difference in the vectors of integration into the international political and economic environment as a result of military aggression against Ukraine; the need to cooperate with leading companies to carry out technological modernization of the defense industry.