The UK government has announced the creation of a new defence innovation organisation to accelerate the development and deployment of cutting-edge military technology, reinforcing national security while driving economic growth and job creation across the UK.
This initiative, part of the biggest overhaul of defence in 50 years, will work with top defence firms, start-ups, and investors to fast-track innovative solutions from concept to large-scale production. The move aligns with the Government’s Plan for Change and follows the largest sustained increase in defence spending since the Cold War.
Defence Innovation Driving Economic Growth
At a high-profile roundtable at RAF Waddington, Chancellor Rachel Reeves, Defence Secretary John Healey, and Business Secretary Jonathan Reynolds met with leaders from 15 of the UK’s top defence firms to outline the new unit’s objectives.
Key priorities include:
🔹 Fast-tracking innovation – Reforming defence procurement to quickly deliver advanced technologies to British forces.
🔹 Boosting UK industry – Supporting defence start-ups and SMEs with new investment pathways.
🔹 Expanding high-tech jobs – Strengthening the UK’s defence supply chain, with 68% of MOD spending already directed outside London and the South East.
🔹 Enhancing security resilience – Ensuring British forces stay ahead in an era of rapid technological and geopolitical change.
Strategic Investment in Next-Generation Defence
The new organisation will simplify and streamline the MOD’s innovation system, making it easier for UK companies to scale up AI, quantum, autonomous systems, cyber, and aerospace technologies. The government will also leverage private investment through the National Security Strategic Investment Fund, bringing in venture capital to support breakthrough defence tech.
Chancellor Rachel Reeves highlighted the importance of this initiative, stating: “In the world we face, national security and economic growth go hand in hand. Investing in cutting-edge defence technology will both make our country safer and put pounds in people’s pockets through high-skilled, well-paid jobs.”
UK Defence Firms Poised for Growth
Industry leaders have welcomed the new initiative. Andy Fraser, Saab UK Group Managing Director, emphasised: “The defence industry benefits growth, investment, and careers while ensuring the UK’s resilience. We look forward to working with the government to keep people and society safe.”
With the Defence Industrial Strategy consultation concluding, the government’s commitment to defence-led economic growth is set to reshape the UK defence sector, ensuring strong supply chains and a world-leading innovation ecosystem for years to come.
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