Defence Online

New ‘Prototype Warfare’ Model Set to Transform UK Defence Supply Chain

Maritime January 30, 2026

A fundamental shift in the UK’s approach to military capability development is required to maintain a strategic edge in an era of rapid technological volatility. A new report from the Royal United Services Institute (RUSI), supported by maritime technology firm Subsea Craft (SSC), argues that the Royal Navy must adopt a ‘prototype warfare’ model, moving away from traditional, lengthy procurement cycles toward a more agile, iterative ecosystem.

The proposed transition has significant implications for the UK defence supply chain, redefining the roles of the state, major primes, and small-to-medium enterprises (SMEs).

From Consumer to ‘Prosumer’

The report suggests a departure from the historical treatment of Research & Development (R&D) as an internal industry function. Instead, it advocates for a ‘prosumer’ model, where the military acts as both a consumer of capability and a producer of the knowledge and intellectual property (IP) required to refine it.

In this framework, the military’s primary contribution to the supply chain shifts from providing up-front funding to offering access to operators, testing infrastructure, and operational data. This allows for rapid iteration – potentially reducing development cycles to as little as 100 days, as demonstrated by Subsea Craft’s work on its VICTA platform.

A New Funding Landscape

Financing remains a critical hurdle for the supply chain. RUSI suggests that while traditional procurement is resource-intensive and risks delivering obsolete technology, the future of early-stage innovation lies in private capital.

The report identifies private family offices as an untapped resource for financing low-maturity (low-TRL) prototypes. Unlike venture capital or pension funds, these offices often possess the high risk tolerance and lower liquidity needs suited for high-risk prototyping. By leveraging private wealth for early-stage risk, state innovation funds can be redirected toward scaling and production infrastructure.

Redefining Roles: Primes as ‘Foundries’

The adoption of prototype warfare necessitates a new division of labour within the defence market:

• SMEs as Rapid Innovators: Small, agile firms are better positioned to drive the initial design of software-defined and modular systems.
• Primes as Integrators and Scalers: Inspired by the semiconductor industry’s “foundry” model, large defence primes could shift their focus toward becoming portfolio managers and integrators of IP developed by SMEs, using their capacity to scale mature prototypes for mass production.

The Radical Role of the State

Perhaps the most striking recommendation is the changing role of the government in the supply chain. Rather than merely being an “agile customer,” the state may need to intervene as a direct partner in scaling.

Drawing on Australia’s Ghost Shark UUV programme as a template, the report suggests the UK government consider partial state ownership of hardware production infrastructure, such as additive manufacturing facilities. This would allow the state to ensure speed and mass once a prototype has proven its value, without stifling the innovation inherent in the private sector.

International Integration and Export

The report also highlights how frameworks like AUKUS can bolster the domestic supply chain through:

• Shared Testing Capacity: Pooling physical ranges and facilities across the three nations to overcome limited domestic availability.
• Digital Twins: Creating standardised digital testing environments to accelerate the progression of prototypes through simulation.
• The ‘Module’ Export Model: Emulating the Israeli sector by focusing on the export of sensors and modules – deals often worth less than $100 million – which are easier to integrate into heterogeneous allied fleets than entire platforms.

Ultimately, the Ministry of Defence is already moving to cut prototype procurement cycles to three months. For the UK supply chain, this means prioritising open architecture, interoperability, and learning over traditional, rigid requirements processes. As the report concludes, accepting early failure in prototyping is essential to reducing long-term strategic vulnerability.

If you would like to join our community and read more articles like this then please click here

Post written by: Vicky Maggiani

Vicky has worked in media for over 25 years and has a wealth of experience in editing and creating copy for a variety of sectors.