More than £35 million in defence funding has helped small businesses across the UK turn cutting-edge ideas into frontline military technology, while also creating jobs and boosting innovation
in sectors from healthcare to telecommunications.
To mark Small Business Saturday, the Ministry of Defence (MOD) has highlighted the growing impact of the Defence and Security Accelerator (DASA), which supports small and medium-sized enterprises (SMEs) to develop new technologies for national security.
Since July 2024, DASA-backed projects have ranged from blast-resistant building systems to laser detection technology and advanced medical training tools. Many of the innovations also have civilian applications, transforming industries beyond defence.
The funding push forms part of a wider government drive to harness commercial innovation through the new UK Defence Innovation (UKDI) organisation, created under the Strategic Defence Review. UKDI will manage a ring-fenced annual budget of at least £400 million to accelerate the development of both defence and dual-use technologies.
Defence ministers say the investment is driving economic growth, with SMEs expanding, strengthening supply chains and creating hundreds of high-skilled jobs nationwide.
From civilian ideas to battlefield use
Among the projects supported by DASA is Scotland-based QuickBlock, whose modular building system was originally designed for civilian use but has now been adapted to provide effective blast and ballistic protection for military operations.
In Wales, Swansea University spin-out Trauma Simulation has developed whole-body training models that are transforming how combat medics and emergency response teams prepare for life-saving interventions on the battlefield.
In the South West of England, Sentinel Photonics has grown from a small founder-led start-up into a 20-strong team. Its laser-protection attachments for rifle scopes have now been integrated into the Army’s new KS1 rifles entering service, protecting soldiers’ eyesight and reducing detection by laser surveillance.
Defence as an engine for growth
A report published earlier this year found that DASA-funded companies have generated nearly £1 billion in economic value and created 1,800 jobs across the UK. In 2024 alone, those firms raised £174 million in private investment, outperforming wider market trends.
Minister for Defence Readiness and Industry, Luke Pollard MP said:
“We are backing small businesses up and down the UK that are the backbone of our economy, creating good jobs across the regions and the UK and easing the cost of living. Our government is committed to supporting businesses to grow and prosper – supporting British security and local communities.
From advanced satellite systems developed in Oxford to innovative ballistic defence structures in Scotland, defence funding is helping these businesses bring transformative technologies into service.
Through our Defence Industrial Strategy, we are supporting local businesses, creating high-skilled jobs and ensuring our Armed Forces have the best tools to keep our nation secure at home and strong abroad”.
The MOD is also aiming to expand opportunities for small firms through its Defence Industrial Strategy and the creation of a new Defence Office for Small Business Growth. The government has set a target to increase spending with SMEs by £2.5 billion by May 2028.
Under the Strategic Defence Review, 10 per cent of the MOD’s annual equipment procurement budget will now be allocated to novel technologies, reinforcing the message that innovation can come from every part of the country.
Head of DASA, Anita Friend said: “Innovation knows no boundaries, and these case studies demonstrate that breakthrough defence and security solutions are being developed in every corner of the UK. UKDI-DASA is committed to finding and funding the best ideas, wherever they originate.
By investing across England, Scotland, Wales and Northern Ireland, we’re not only delivering cutting-edge capabilities, but also strengthening local economies and building a resilient, nationwide innovation ecosystem”.
DASA, now part of UKDI, says its role is to ensure defence benefits from the UK’s regional diversity — from tech hubs and industrial heartlands to rural communities — while delivering cutting-edge capability for the Armed Forces.
The announcement comes as the number of small businesses in the UK rose for the first time since 2020, reaching 5.64 million this year. Photo: Harland Quarrington/MOD, Wikimedia commons.