The Ministry of Defence (MOD) has successfully conducted its inaugural Dragon’s Den event – a Defence and Dual Use Technology Showcase, a high-impact event designed to align UK innovators with private institutional investors.
Hosted at Grant Thornton UK, the session featured ten selected small and medium-sized enterprises (SMEs) pitching their capabilities to an audience of over 100 venture capitalists and defence stakeholders. This initiative forms a central part of the government’s broader strategy to leverage the defence sector as a catalyst for economic growth, as outlined in the Strategic Defence Review and the Defence Industrial Strategy.
The focus of the showcase remained on dual-use technologies – innovations applicable to both military and civilian sectors – reflecting a strategic shift towards more agile procurement and capital-raising models. By facilitating direct access to private finance, the MOD aims to accelerate the transition of next-generation warfighting technology from initial development to frontline deployment. This move is supported by the government’s commitment to increase defence spending to 2.6% of GDP by 2027, creating a stable environment for long-term investment and industrial scaling within the domestic supply chain.
For companies operating within the UK defence sector, the government has set ambitious financial targets to encourage SME participation and supply chain resilience. In the 2024/25 financial year, the MOD directed £1.2 billion in direct investment toward SMEs. Moving forward, a new target has been established to provide an additional £2.5 billion in funding through to May 2028. This will bring the total projected MOD expenditure with SMEs to £7.5 billion over this period, representing a significant opportunity for sub-contractors and technology providers to expand their market share and secure long-term contracts.
To support these financial goals, the MOD has introduced several structural enhancements to assist businesses in navigating the complex defence landscape. The newly established Defence Office for Small Business Growth, which became operational in January, provides expert policy and commercial guidance to help firms bid for and secure contracts. Additionally, the Ministry is expanding its international footprint with the opening of a new business centre in Kyiv this year. This facility is intended to facilitate UK firms in equipping the Ukrainian Armed Forces while simultaneously opening new export markets for British industry.
Further resources available to the sector include the Online Export Faculty and the SME Surgery Programme, which has already provided bespoke advisory services to over 1,000 businesses across the UK since May 2024. These initiatives collectively aim to simplify procurement pathways and ensure that the UK remains a competitive global hub for defence innovation and export growth.
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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.
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