The UK's Modern Industrial Strategy

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defence In this Modern Industrial Strategy, the government says it intends to accelerate the adoption of novel and dual-use technologies by: - Spending at least 10% of the Ministry of Defence (MOD)’s equipment budget on acquiring novel technologies, such as drones and Artificial Intelligence (AI) enabled technology, pulling cutting-edge technology over the ‘valley of death’ from prototype to production and aligning this with the government’s ambitions for innovation and technology in other sectors. - Launching UK Defence Innovation to identify, develop and procure cutting- edge technologies, backed by a £400m budget, to fast-track innovative technology to the frontline while supporting the UK tech sector. - Launching an alliance with the High Value Manufacturing Catapult to leverage its world-leading research and development capabilities. - Increasing MOD’s spending with SMEs by £2.5bn by May 2028, a 50% increase against a financial year 2023/24 baseline, ensuring that they receive at least £7.5bn of MOD’s total budget in financial year 2027/2028. - Deploying the SME Support Centre to boost opportunities for non-traditional suppliers. - Defence operational developments are eligible for fast-track planning where they are considered nationally important Crown Developments, when being delivered by or on behalf of a Crown Body.

- Engaging the industry early in procurement processes on desired outcomes.

- Ensuring suppliers are rewarded for productivity, meeting deadlines and for taking risks.

- Reducing the burden on potential suppliers from startups to primes.

- Implementing a new, segmented approach to procurement: contracting major modular platforms within two years; pace-setting spiral and modular upgrades within a year and rapid commercial exploitation within three months.

THE UK'S MODERN INDUSTRIAL STRATEGY

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