The UK Government’s new UK Defence Innovation (UKDI) organisation begins work today to streamline the delivery of new technologies to Armed Forces personnel.

UKDI will now be the focal point for innovation within the Ministry of Defence, backed by a ringfenced annual budget of at least £400 million designed to turn the nation’s defence industry into an engine for growth, and create thousands of high-skilled jobs in the dual-use technology sector. 

According to the government, the new body will simplify and streamline the MoD’s innovation systems as outlined in last month’s Strategic Defence Review (SDR), moving ‘quickly and decisively’ to ensure UK firms can scale up prototypes rapidly without being bogged down by red tape. 

To do that, UKDI will introduce different ways of contracting than other MoD projects, with defence tech companies provided with a clear pathway from initial production to manufacturing at scale.

As part of UKDI’s launch, two core teams have been established to support innovation in the UK’s defence sector. 

First, a new Rapid Innovation Team (RIT) will enable innovation at ‘wartime pace’ by utilising commercially available dual-use technology to address urgent operational problems, while Regional Engagement Teams across the UK will identify and support dual-use innovation from SMEs and spin-outs, delivering targeted outreach and business development support. 

“Defence is only as strong as the industry that stands behind it, and through UKDI we’re putting innovation at the heart of our approach,” said John Healey, defence secretary. 

“This shift represents a crucial part of our commitment to change defence, backing the high-growth UK firms developing pioneering technology of the future to boost our national security and make defence an engine for growth – fundamental to our Plan for Change and delivering on the SDR.”

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The official launch of UKDI follows the government’s commitment to the largest sustained increase in defence spending since the end of the Cold War – hitting 2.6% by 2027, with an ambition to reach 3% in the next parliament. 

Earlier this year, a report from Beauhurst revealed the economic impact that defence tech is having on the UK, with companies funded by the MoD’s Defence and Security Accelerator (DASA) raising three-quarters of a billion in funding, creating almost 2,000 new jobs, and generating nearly £1 billion in GVA.