The Cabinet of Ministers is launching a new program for science and business — UAH 100 million will be allocated for it

For the first time, the Cabinet of Ministers is launching a mechanism of state support for joint applied research and development projects to be carried out by research institutions and universities commissioned by technology businesses.

This is reported by UNN, citing the Cabinet of Ministers and the Ministry of Education and Science.

Details

In 2026, UAH 100 million is allocated for the program, while the share of state co-financing, depending on the size of the enterprise, will range from 50% to 65% of the project’s cost.

The new mechanism is intended to combine the needs of Ukrainian technology businesses with the capabilities of state universities and research institutions. It involves a model in which a company formulates a specific technological, production, or engineering problem, while a research team develops a solution that could potentially be put into production.

Thus, the state plans to support fundamental and initiative-driven research, and above all applied projects that have a specific potential customer and prospects for practical use. The new system is expected to shorten the path from a scientific idea or laboratory development to a ready-made technology, product, or production solution.

Particular emphasis will be placed on technologies that can be used in the interests of Ukraine’s defense, as well as for modernizing Ukrainian industry and other sectors of the economy.

The state budget allocates UAH 100 million for implementing the new mechanism in 2026. At the same time, project funding will not be entirely shouldered by the state. Businesses interested in the relevant technology or development will also have to contribute their own funds.

The share of state funding will depend on the size of the company. For small businesses, the state will be able to cover up to 65% of the project’s cost. For medium-sized enterprises, the level of state co-financing will be up to 60%; for large businesses, up to 50%. The company initiating the project must provide the rest of the required amount.

This approach is intended to confirm the enterprise’s genuine interest in the research results and its readiness not only to formulate a technological request but also to participate in financing the development and its subsequent implementation.

It is known that the maximum duration of a single research or research-and-development project will be 18 months.

What developments are planned for support

One of the program’s key areas is national security and defense. In particular, this may include research and development in the fields of weapons and military equipment, robotic systems, new materials, information technology, and other technological solutions that can be used for defense needs.

At the same time, the program will not be limited exclusively to defense projects. The areas identified by the Ministry of Education and Science also include energy transportation technologies, improving energy efficiency, resource conservation, and the development of alternative energy sources.

A separate block covers high-tech transport, the rocket and space industry, aircraft manufacturing, and shipbuilding.

Support is also envisaged for research in the creation of new materials, technologies for their production, processing, and joining, as well as nanomaterials and nanotechnologies. The priorities also include the technological modernization of the agro-industrial complex, medical technologies, new medical equipment, treatment methods, and pharmaceutical developments.

Other selected areas include environmentally friendly production technologies, environmental protection solutions, modern information and communication technologies, and robotics.

How the first projects will be formed

Preparations for launching the first competition began even before the government adopted the relevant decision. On August 19, the Ministry of Education and Science announced the collection of technological and production requests from Ukrainian companies. Businesses were invited to report technological problems that enterprises could not solve on their own and for which the involvement of researchers might potentially be required.

At this stage, companies do not need to prepare a complete technical specification or a finished project. An enterprise may describe a problem, a need for a specific technology, product, or technical solution. Going forward, such requests are expected to form the basis for defining the themes of the first competitive selection.

The model effectively envisages a chain in which business identifies a technological problem, a research team proposes a way to solve it, and the state and the company jointly finance the research or development.

Who will carry out the research

Teams from state universities and research institutions are planned to be involved in implementing the projects. This should make it possible to use scientific infrastructure, laboratories, and the work of Ukrainian researchers to address enterprises’ applied technological challenges. At the same time, the mechanism should create an additional source of funding for research institutions and an incentive to work on developments that have a specific potential user.

The draft procedure previously submitted by the Ministry of Education and Science for public discussion envisaged the possibility of concluding a trilateral agreement between the Ministry of Education and Science, a research institution or university, and the initiating company. Such agreements were to define the amount and procedure for funding, the expected results of the research, the deadlines for carrying out the work, as well as issues concerning rights to the intellectual property created במסגרת the project.

This aspect is of particular importance for technology businesses, since the possibility of subsequent serial production and commercialization will depend on the terms governing the use of patents, technologies, software, or other development results.

What else the competition must determine

Despite the launch of the mechanism, a number of parameters of the future competitive selection will have to be detailed directly in the competition documentation. In particular, this concerns the maximum possible amount of state funding for a single project, the specific list of eligible expenses, and the procedure for submitting and evaluating applications.

The criteria by which experts will assess the technological prospects of projects, their practical value, feasibility of implementation, and potential economic or defense-related impact must also be defined in detail.

The rules for allocating rights to research results and intellectual property between the business and the research institution will be of separate importance.

Context

Preparation of the new mechanism for cooperation between science and business began  at the end of 2025. In December, the Ministry of Education and Science submitted for public discussion a draft resolution on launching joint scientific research with business.

The initiative was intended to create a system in which public funds would be directed toward developments that meet the specific technological needs of Ukrainian enterprises. Separate funding for the new mechanism was provided for in the 2026 state budget.

About UAH 100 million was allocated for the competition, which at the preparation stage was referred to as "Business and Science."

The launch of the program is intended as an attempt to address one of the longstanding problems of Ukrainian science—the weak link between scientific research and its practical application in industry.

Because of limited business demand for scientific developments, a significant share of research results traditionally failed to reach the stage of serial production or commercial use. The new mechanism is intended to change this model: companies should participate directly in shaping research topics, finance part of the work, and have an interest in the subsequent use of the technologies obtained.

For the state, the program also has defense significance, as it makes it possible to direct the scientific potential of universities and research institutions toward addressing the technological challenges required by Ukraine’s defense-industrial complex.

At the same time, the effectiveness of the new mechanism will depend on how quickly it is possible to hold the first competition, engage technology businesses, and ensure the actual implementation of the funded developments.

As a reminder

Somewhat earlier, Ukrainian arms manufacturers warned of the risk of disruptions to supplies to the front.