Introduction. The article substantiates the importance of the industrial development to strengthening the country's defense capability and ensure the civilian population needs. Based on a comparison of the financing of the defense complex in different countries, it is shown that, in addition to direct military expenditures, defense capability depends on a developed industrial complex. Prospective types of industrial activity in Ukraine, which have a high degree of influence on meeting the needs of the economy in the conditions of war time, have been identified. New technologies for ensuring defense capability are defined and tools for digital and innovative transformations in Ukrainian industry are proposed. Materials and methods. The substantiation of the industrial complex capabilities to strengthen the national security, the determination of key areas of production to meet the needs of the economy in the conditions of war time, as well as the set of tools for realizing such capabilities in Ukraine was carried out by dialectical, formal-legal, systemic-structural and comparative methods. The dialectical method made it possible to determine the possibilities of manufacturing modern means of defense and products for the lifesaving of the country's population. With the help of the formal-legal method, the content of the norms of separate current normative legal acts of Ukraine, which define the concept of the country's defense capability, is highlighted. The use of the system-structural method made it possible to determine key strategic goals and key strategic initiatives for digital and innovative transformations in Ukrainian industry. Comparative methods of economic and statistical analysis based on statistical data of the Stockholm International Peace Research Institute (SIPRI), the Ministry of Finance and the Central Bank of the Russian Federation were used to determine the trends in the financing of defense expenditures in different countries. Results and discussion. Countering military threats depends on the state's ability to ensure the safety of the population and the integrity of the territory, where a powerful industrial complex plays the main role. Financing of the defense sector for the supply of weapons and means of warfare in Ukraine is insufficient compared to other countries, although during wartime its volumes increase. At the same time, it is impossible to imagine a combat-ready army without proper provision of special uniforms, protective equipment, food, fuel and lubricants, medicines, etc. All this confirms the importance of a developed industrial complex in creating available resources to meet the needs of not only the civilian population, but also the needs of the army. To increase the country's readiness for military threats, it is necessary to activate innovative transformations in advance by introducing technologies to production processes in industry, such as artificial intelligence and machine learning; robotics, bioinformatics, blockchain, and countermeasures against cyber threats. The wide application of such technologies in all spheres of scientific, industrial and military activity will allow strengthening the country's defense capabilities and provide additional opportunities for managing combat operations, destroying enemy equipment and preventing infiltration into the country's territory; hiding one's positions and masking; conducting search and rescue operations; data collection and documentation of war crimes; protection, productivity and life support, as well as to counter cyberattacks. Conclusions. As a result of the study, a list of advanced Industry 4.0 technologies was determined, the production of which can be organized at Ukrainian factories with the cooperation of foreign partners. The primary measures to accelerate the technological transformation of Ukrainian production based on the establishment of an effective dialogue between state and local authorities, national manufacturers and scientific and educational institutions, as well as close cooperation with European and international clusters, are substantiated.