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The MoD is actively encouraging startups and tech-led SMEs to innovate for Defence to capitalise on fast-moving civilian technologies and boost national security. Many are targeting hybrid or ‘dual use’ technologies, with potential civilian and defence sector applications – but what should their IP strategies look like?

In this DPRTE Community exclusive, we hear from Defence Innovation specialists, Richard Worthington and Talia Ford, from European IP firm, Withers & Rogers.

Innovating for Defence is an attractive proposition for tech-led SMEs and investors in the current climate, due to the increased funding available. The Defence Investment Plan, published by the UKDI in June 2026, sets out a plan for defence spending to increase from £3.4 billion in 2026-2027 to £4 billion by 2029-2030; with a total spend of £15 billion between now and 2030.

The main drivers for this increase in funding are the Ukraine-Russia conflict and heightened geopolitical instability; leading many governments around the world to focus on improving resilience and national security.  At the same time, the fast-paced evolution of modern warfare practices has required a change of approach. In the UK and Europe, governments have stepped back from big-ticket defence programmes, with long production cycles and established supply networks, in favour of a more agile approach. The UKDI is encouraging this more agile approach by inviting SME innovators to focus on asymmetric tactics and automation technologies, designed to reduce human risk.

Investor interest in the development of sophisticated drone and counter-drone technologies that can be produced at scale cheaply and provide this asymmetric effect, has led to a surge in innovation activity. Tech-led startups and SMEs are well placed to capitalise on investment opportunities, especially if they are operating in one of the 5 new innovation themes that the UKDI has identified for funding.

However, innovating for Defence is not without hurdles for startups and early-stage businesses. Despite strong availability of funding in the current climate, some tech-led innovators are apprehensive about being hamstrung by national security restrictions and export controls. These potentially negative aspects can be mitigated by adopting a dual-use innovation strategy, allowing companies to develop technologies for two end markets – civilian and defence – simultaneously.

There are many examples of dual-use innovation in practice. The innovation behind Superglue was originally developed by the US Department of Defense, specifically for military use. However, the innovators recognised the potential for other uses and the underlying technology has since been used in adhesive products for the consumer market. Amazon has been trialling drones capable of picking up and carrying high payloads autonomously – an activity that could be useful militarily. In the world of F1 racing, high-speed drones with precision tracking capability, have demonstrated their ability to capture imagery in high definition (HD) – an advancement that could deliver a competitive advantage on the battlefield.

From an intellectual property (IP) perspective, the best advice for defence innovators is generally to consider IP early but avoid putting all your eggs in one basket. Building a patent portfolio for a novel technological innovation could grant you the rights to enable significant commercial rewards over a period of 20 years. These commercial rewards could be found in both military and non-military industries. Therefore, considering potential cross-industry applications for an innovation early on will help to avoid a scenario where a new product is launched successfully in one market, only to find that a repackaged version of the same underlying technology for a different market, is not protected.

Cross-sector understanding and the ability to obtain IP rights, which can be applied to multiple sectors, can be incredibly valuable for startups and other innovation-led companies. For example, broad protection of the underlying concept can enable the technology to be protected in industries outside of the initial industry that prompted the innovation. Therefore, building an IP portfolio to protect an innovation, based on a dual-use strategy, will also give investors extra reassurance that its full commercial potential can be realised.

In summary, there are plenty of opportunities for SMEs innovating in rapidly advancing technologies, such as automation, AI, quantum computing and more, to secure defence funding. Adopting a dual-use IP strategy at an early stage will de-risk their business plan; helping to secure investment and optimise commercial rewards.

Richard Worthington, partner, and Talia Ford, senior associate, are patent attorneys at European IP firm, Withers & Rogers. Both specialise in advising defence innovators on strategies for commercial protection.

 

Post written by: Alastair Roberts

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