UK Defence Innovation shifts funding towards rapid deployment

A commercially available remotely operated vehicle adapted by the UK's Defence Science and Technology Laboratory to place remote undersea charges in a demonstration in June 2025. (UK MoD/Crown Copyright)

The UK Ministry of Defence (MoD) is changing how it funds innovation to speed the move from development to operational use. The change was described by an official speaking under the Chatham House Rule at the Apex Europe 2026 conference in London on 7–8 October. The official said the default was now to accelerate capability in under two years, compared with four or five years previously for concept and pre-concept work. UK Defence Innovation (UKDI), formally established in July 2025, brought together several existing MoD innovation bodies.

UKDI has a ring-fenced annual budget of at least £400 million to “accelerate innovative capability into operations”, the official said. A second aim is to “grow the UK technology sector and UK prosperity”. Funding can go to UK small and medium-sized enterprises (SMEs), prime contractors, and international companies with a UK presence or a UK partner. The MoD has publicly described UKDI's remit as harnessing commercial innovation, including dual-use technologies.

The official described a 3:2:1 model: fund three companies to develop minimum viable products (MVPs), take two forward to minimum deployable capability (MDC), then scale one selected solution through a contract and further development. Moving from MVP to MDC often involves working out how to command and control a capability, support it and train users. “The intent to scale, to buy those capabilities, is what drives industry,” he said.