BAE Systems launches flagship incubator programme

Land February 10, 2026

Constellia has announced that it has been awarded the NVFi (Neutral Vendor Framework for Innovation (NVFi) [Award]) by the MOD to compliantly and transparently increase speed and value for money in digital and innovation procurement as part of the MOD’s procurement reform.

BAE Systems has officially launched “Launchpad,” a flagship technology incubator designed to commercialise dual-use innovations by spinning them into independent start-ups.

This initiative directly supports the UK Government’s Defence Industrial Strategy, which emphasises the rapid transition of military-grade technology into scalable commercial ventures to support national economic growth and sovereign capability. By addressing the historical challenge of moving technologies beyond the prototype phase, Launchpad aims to ensure that UK-developed intellectual property reaches its full market potential across sectors such as energy and advanced manufacturing.

The first company to emerge from the programme is Rho-C, a start-up currently closing its initial venture capital funding round. Rho-C is commercialising technology originally developed for BAE Systems’ submarine programmes, which facilitates the transmission of power and data through solid materials without the need for drilling or physical wiring. While initially conceptualised for naval applications, the technology offers significant efficiency and safety improvements for the oil and gas industry. This transition exemplifies the “defence dividend,” where military research and development investment provides a competitive advantage for UK businesses in broader commercial markets.

For the wider defence supply chain and academic community, Launchpad represents a new avenue for collaborative innovation. BAE Systems has indicated that future ventures may involve partnerships with academic institutions and third-party technology specialists. Potential areas of focus include the commercialisation of quantum clocks for radar systems and the development of hyperspectral sensing capabilities. Julian Cracknell, Chief Technology and Information Officer at BAE Systems, noted that the programme is intended to bring agile start-ups to market, reinforcing the agility required in the current security environment while strengthening the domestic industrial base.

The incubator provides participants with more than just intellectual property; it offers access to BAE Systems’ technical experts and operational support to establish new corporate entities. As the UK defence sector moves toward a model of constant innovation at “wartime pace,” such programmes are vital for sub-contractors and small-to-medium enterprises (SMEs) looking to leverage high-assurance technologies in diverse markets. By creating a structured pipeline for successful spinouts, the Launchpad initiative aims to foster a more robust and interconnected defence and technology ecosystem in the United Kingdom, ensuring that strategic technological advancements translate into tangible industrial growth.

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