Defence innovation:Turning strategic ambition into economic growth
Defence is increasingly recognised not only as a national security priority, but as a powerful driver of innovation, productivity and regional economic growth. This aligns closely with Innovate UK’s 2026 Prospectus, which sets out a clear ambition to accelerate business innovation, back the UK’s most promising technology businesses and create the conditions for breakthrough ideas to become industry-leading companies.
Innovate UK is already bringing that ambition to life through a growing portfolio of defence and national security activity designed to strengthen sovereign capability, accelerate the adoption of dual-use technologies and unlock opportunities for businesses across the UK.
The focus is clear: connect innovators with real-world challenges, support the development of transformative technologies and help innovative businesses scale faster.
Investing in dual-use technologies
One of the most significant early investments in this area is the first £20 million package of support being delivered through Innovate UK’s defence innovation portfolio. This includes £15 million for dual-use innovation, supporting businesses whose technologies have applications across both civil and defence markets.
The programme reflects the growing importance of dual-use technologies driving advancement in autonomous systems and counter UAS technologies, including artificial intelligence, advanced materials, cybersecurity, robotics and sensing technologies. Many of the technologies are developing faster in civil markets whilst the pace of innovation adoption needed in defence and national security has dramatically shifted in global conflicts, requiring a change of approach to deliver real impact.
Support beyond research and development
While access to funding remains critical, helping businesses commercialise emerging technologies, navigate defence markets and achieve sustainable growth is equally important.
To address this, Innovate UK is expanding the support available to innovative companies through partnerships with organisations including the High Value Manufacturing Catapult and Make UK Defence. Together, they are delivering the STRONG programme, which helps innovative SMEs commercialise new technologies, build defence-ready capabilities and access new supply chain opportunities.
Following a successful first phase, the programme is now expanding to support 30 SMEs developing dual-use aviation and counter-UAS technologies, providing expert coaching, technical support and routes into the defence market. This reflects Innovate UK’s commitment to supporting businesses throughout the innovation journey, helping them move beyond successful R&D projects towards long-term growth and market adoption.
Strong regional capability and supply chains
Alongside investment and business support, Innovate UK is strengthening collaboration across the defence innovation ecosystem.
By utilising the Innovation Exchange (iX) programme, Innovate UK can bring together organisations operating within defence and national security supply chains with innovators capable of solving complex technical challenges. The programme is designed to create collaborative partnerships that accelerate technology development and adoption while generating economic opportunity for the UK.
Regional growth is a cornerstone of this approach. Innovate UK is piloting this as a regional supply chain initiative, helping businesses, clusters and local ecosystems collaborate around shared opportunities. These activities are designed to strengthen local capabilities, build resilient supply chains and create pathways for innovative businesses to access defence markets.
This regional focus aligns strongly with wider government ambitions to build defence-related growth across the UK and to strengthen local innovation ecosystems. Defence is increasingly seen as a catalyst for regional development, investment and productivity, creating opportunities for SMEs, scale-ups, universities and research organisations to contribute to national capability while generating local economic value.
Security and prosperity through innovation
Looking ahead, UKRI’s new National Security and Defence Programme, under which this activity sits, aims to position UKRI as a strategic connector across the defence and security innovation ecosystem. Working in partnership with organisations including UK Defence Innovation (UKDI), the Ministry of Justice (MoJ), wider government departments, in addition to industry, regional partners, investors and innovation networks, the programme will build connections, collaborations and intelligence needed to accelerate innovation, support business growth and ensure promising technologies reach adoption faster.
As UKRI and Innovate UK implement their new strategy, defence and national security innovation provides a strong example of how targeted support, challenge-led collaboration, regional and cross-government engagement can help transform breakthrough ideas into commercial success and operational impact.
By investing in dual-use technologies, strengthening industrial partnerships and supporting high-growth businesses across the UK, Innovate UK is helping to transform defence and security innovation into strategic advantage, driving long-term national resilience, economic prosperity and sovereign capability.
Programme
This article is part of Innovation Exchange.
Innovate UK Innovation Exchange is a cross-sector programme supporting innovation transfer by matching industry challenges to innovative companies from other sectors. It does this by putting large businesses with technical needs in contact with companies who have the right innovative solutions, for faster development of novel solutions.