We recently hosted a roundtable bringing together senior figures from the defence, legal, and technology sectors to explore how the UK can modernise military procurement and unlock innovation across its national security landscape. The keynote was delivered by Sir Ben Wallace, former UK Secretary of State for Defence, who shared candid reflections on the systemic reforms needed to future-proof the UK’s defence capabilities.
Reimagining procurement for a new era
Breaking into the defence sector remains notoriously difficult for emerging technology companies. Procurement frameworks are often designed around large prime contractors, with extended cycles and rigid requirements.
Culture as a catalyst
Innovation is not just a technical challenge - it’s a cultural one. The roundtable underscored the need for a mindset shift across defence institutions: from risk-aversion to experimentation, from legacy systems to iterative development. Embracing agility, particularly in areas like AI, cyber, and autonomous systems is essential to staying ahead of evolving threats.
Funding the Future
Participants highlighted the critical importance of establishing dedicated, ringfenced budgets for defence innovation. Without such protected funding streams, early-stage ventures are often eclipsed by established procurement priorities, impeding the advancement of novel technologies. Strategic investment in innovation programmes—supported by devolved financial authority to operational units—is essential to cultivating next-generation defence capabilities.
Beyond drones: quantum, semiconductors and advanced materials
While drone technology continues to advance, the conversation turned to the next frontier: quantum computing, semiconductors, and advanced materials. These foundational technologies will underpin future defence capabilities- from secure communications to advanced sensing and AI-enabled decision-making.
Lessons from the US
The US Department of Defense’s direct engagement with platforms like Palantir and Anduril offers a compelling model. By contracting directly with tech innovators, the US accelerates capability delivery. The UK and Europe could benefit from adopting similar approaches to streamline procurement and foster innovation.
Attracting the next generation of tech talent
To remain competitive, the Ministry of Defence must become a magnet for top-tier technical talent. This means investing in skills pipelines, rethinking organisational structures, and creating environments where engineers, data scientists, and innovators can thrive.
Strategic defence review: a moment of opportunity
The UK’s Strategic Defence Review (SDR) presents a rare opportunity to drive meaningful change. But its success will hinge on reforming acquisition processes and incentivising high-impact technology investment. The SDR must be more than a policy document - it must be a catalyst for transformation.
Space: the final frontier for defence innovation
The roundtable also explored the growing strategic importance of Space. Companies like Helsing are demonstrating real-time AI capabilities in space environments, and there was consensus on the need for greater UK and NATO investment in sovereign satellite infrastructure - to ensure strategic autonomy and resilience.
Germany: confronting capacity and capability gaps
The discussion resonated well beyond the UK, with notable implications for Germany’s defence landscape. In Germany, ongoing debates highlight the tension between ambition and reality in military procurement. Despite the €100 billion Sondervermögen earmarked for the Bundeswehr, significant gaps remain—from drone capabilities to basic operational readiness. As noted in recent public debates, Germany faces structural obstacles in translating financial commitments into deployable capacity. Recent discussions about loosening the debt brake to create additional fiscal space for defence spending further underscore the point: funding alone will not solve the Bundeswehr’s challenges. Without procurement reform and faster implementation, additional resources risk being absorbed without closing operational gaps. For Europe’s largest economy, aligning procurement reform with innovative incentives will be decisive in delivering credible defence contributions within NATO.
Our Defence Tech roundtable delivered a clear and urgent message: the future of defence lies in bold collaboration, agile procurement, and sustained investment in innovation. As the UK and Europe redefines their defence posture - legal frameworks, funding models, and talent strategies must evolve in lockstep to meet the demands of a rapidly changing global security environment.
