The number and value of Defence Innovation Loans made since 4 July 2024, by financial year (FY), are as follows:

DIL Round Number Value

Defence Innovation Loan FY2023-24 Cycle 4 1 £881,570

Defence Innovation Loan FY2023-24 Cycle 7 1 £1,247,513

Defence Innovation Loan FY2024-25 Cycle 2 1 £750,000

Defence Innovation Loan FY2024-25 Cycle 5 1 £451,600

TOTAL 4 £3,330,683

Defence Innovation Loans are considered to be “made” when funding is agreed at the end of the two-stage decision process, finalised by the Innovate UK Credit Committee, which can sit several months after the initial DASA/F&G decision conference. This is why two projects appear in this list despite their DIL Cycle being prior to the date stated in the PQ.

The Ministry of Defence (MOD) has established UK Defence Innovation (UKDI) which represents a fundamental transformation of how the Ministry of Defence (MOD) approaches innovation.

Learning lessons from Ukraine as well as other international partners UKDI will act and operate differently, ruthlessly prioritising to focus on the areas with most potential, with significant freedoms to contract with speed, simplicity, and flexibility, harnessing and bolstering the competitiveness of the UK’s tech sector.

UKDI has established Regional and Devolved Authorities Engagement Teams across the UK to systematically identify and nurture dual-use innovation from SMEs, mid-tier companies, and academic spin-outs.

The core mission of the Regional and Devolved Authorities Engagement Teams is to deliver targeted outreach, support business development, foster supply chain collaboration, and accelerate the commercialisation of emerging technologies aligned with Defence and National Security priorities.

These teams will facilitate regional access to defence-focused loans, investors, and venture builder services, while gathering critical market intelligence for MOD and National Security stakeholders.

Since 2024 the MOD has run seven defence trade missions to Ukraine in conjunction with the Trade Association ADS. These have facilitated engagement for UK business of all sizes, but with a particular focus on SMEs, with Ukrainian industry and government. We will continue our support for business and create an enduring presence for UK industry in Kyiv through the establishment of a UK Business Centre, while working to develop capabilities alongside the Ukrainian defence ecosystem.

I refer the hon. Member to the answer I gave on 31 March 2026 to Question 123249 to the hon. Member for Basildon and Billericay (Mr Holden).

The UK Armed Forces are drawing key lessons from Ukraine, particularly the need for a much faster ‘learn and adapt’ cycle to accelerate developments in our capabilities, doctrine, and tactics.

Lessons from both Ukraine and the Middle East are already being applied to deliver cost-effective air defence solutions for the UK and its partners. The Strategic Defence Review announced up to £1 billion for UK air and missile defence. Work to deliver the Strategic Defence Reviews recommendations, including on Integrated Air and Missile Defence, will be set out in the forthcoming Defence Investment Plan.

One of the key lessons for the Ministry of Defence from the war in Ukraine is the importance of pace and technical innovation in procurement if our Armed Forces are to retain an edge over, and therefore deter, our adversaries.

Ongoing reforms across the National Armaments Director (NAD) Group are putting these lessons into practice. For example, the new segmented approach to procurement tailors acquisition processes according to the type of capability, supplier and risk involved, speeding delivery. Similarly, the Accelerating Commercial Pathways and Commercial X programmes are reducing the time taken to complete commercial processes and get procurements on contract.

With the creation of UK Defence Innovation (UKDI) we have put innovation at the centre of defence procurement. With a ring-fenced budget, UKDI will ensure we are able to quickly acquire the cutting-edge capabilities our Armed Forces need to keep pace with the evolving nature of warfare.

We recognise the importance of the MOD Areas of Research Interest (ARI) in signalling Defence priorities and enabling effective engagement with the UK research community. The Department is therefore updating the MOD ARI to ensure they clearly reflect current Defence and national security priorities, and to strengthen our partnership with academia. This work is being taken forward as part of a renewed focus on closer, more strategic collaboration with the UK academic community, including through the establishment of the Defence Universities Alliance. We expect to publish updated ARI before summer 2026.

The UK’s Armed Forces are learning much from the war in Ukraine, particularly the need for a much faster ‘learn and adapt’ cycle to accelerate developments in our capabilities, doctrine, and tactics. More broadly, the Strategic Defence Review considered all aspects of Defence, including the capabilities required by the UK to meet the challenges, threats, and opportunities of the twenty-first century.

Integrated Air and Missile Defence investments will be prioritised appropriately against the assessed threat picture as part of the future Integrated Force. Work to deliver the Strategic Defence Review recommendations, including on Integrated Air and Missile Defence, drones and electromagnetic warfare will be set out in the forthcoming Defence Investment Plan.

Ministry of Defence officials met representatives of the UK/EU-Ukraine Defence Innovation Corridor in March 2026 and advised on how any proposal could best align with existing UK-Ukraine defence engagement. We will keep early‑stage initiatives under review.

Regarding helping UK companies exporting to Ukraine, building on our seventh and largest Trade Mission programme to Ukraine in March 2026; we are opening a Business Centre in Kyiv later this year, as we move to a permanent presence in Ukraine. This will help UK firms identify collaboration, partnership, and future export opportunities, for the UK and Ukraine's mutual benefit.

The pace of Defence's 'learn and adapt' cycle has accelerated exponentially as a result of lessons learnt in Ukraine The SDR highlighted the importance of autonomous systems within the UK’s integrated force. Decisions on the UK’s equipment requirements, including drones, electromagnetic warfare and autonomous systems, will be prioritised appropriately against the threat as part of the future Integrated Force and set out in the Defence Investment Plan to be published this year.

The UK is learning extensively from Ukraine, particularly the need for a much faster 'learn and adapt' cycle and the ability to analyse real time data to drive rapid changes in capability and tactics though rapid innovation. This continues to inform UK Defence Policy alongside the Strategic Defence Review and the forthcoming Defence Investment Plan. As such, we are strengthening collaboration between operators, scientists and industry to accelerate our innovation activity to satisfy Defence requirements.

The Secretary of State for Defence continues to work closely with the Government of Ukraine and NATO partners on the sharing of knowledge and insights from the war in Ukraine, whose technologists and armed forces are constantly evolving capabilities to address a variety of threats from Russia. UK Defence Innovation is informed by lessons from Ukraine, sharing knowledge internationally through NATO DIANA and AUKUS Pillar 2.

Under Programme LYRA, we are informing future defence and security innovation with the Government of Ukraine, sharing what works and what doesn't.

We are building a sustained defence industrial partnership between the UK and Ukraine which will develop industrial capacity while supporting UK and Ukrainian security. The 100 Year Partnership between the UK and Ukraine facilities the rapid pursuit of sustainable production to create a dynamic ecosystem of defence innovation.

We recognise that Ukraine's experience in defending itself against large-scale aggression represents a unique and valuable resource for the development of modern defence capabilities. We are committed to promoting the systematic integration of Ukraine's operational experience into military training, doctrinal development, and capability planning.

We will stand with Ukraine for as long as it takes.

The Secretary of State for Defence continues to work closely with the Government of Ukraine and NATO partners on the sharing of knowledge and insights from the war in Ukraine, whose technologists and armed forces are constantly evolving capabilities to address a variety of threats from Russia. UK Defence Innovation is informed by lessons from Ukraine, sharing knowledge internationally through NATO DIANA and AUKUS Pillar 2.

Under Programme LYRA, we are informing future defence and security innovation with the Government of Ukraine, sharing what works and what doesn't.

We are building a sustained defence industrial partnership between the UK and Ukraine which will develop industrial capacity while supporting UK and Ukrainian security. The 100 Year Partnership between the UK and Ukraine facilities the rapid pursuit of sustainable production to create a dynamic ecosystem of defence innovation.

We recognise that Ukraine's experience in defending itself against large-scale aggression represents a unique and valuable resource for the development of modern defence capabilities. We are committed to promoting the systematic integration of Ukraine's operational experience into military training, doctrinal development, and capability planning.

We will stand with Ukraine for as long as it takes.

The Secretary of State for Defence continues to work closely with the Government of Ukraine and NATO partners on the sharing of knowledge and insights from the war in Ukraine, whose technologists and armed forces are constantly evolving capabilities to address a variety of threats from Russia. UK Defence Innovation is informed by lessons from Ukraine, sharing knowledge internationally through NATO DIANA and AUKUS Pillar 2.

Under Programme LYRA, we are informing future defence and security innovation with the Government of Ukraine, sharing what works and what doesn't.

We are building a sustained defence industrial partnership between the UK and Ukraine which will develop industrial capacity while supporting UK and Ukrainian security. The 100 Year Partnership between the UK and Ukraine facilities the rapid pursuit of sustainable production to create a dynamic ecosystem of defence innovation.

We recognise that Ukraine's experience in defending itself against large-scale aggression represents a unique and valuable resource for the development of modern defence capabilities. We are committed to promoting the systematic integration of Ukraine's operational experience into military training, doctrinal development, and capability planning.

We will stand with Ukraine for as long as it takes.

The Secretary of State for Defence continues to work closely with the Government of Ukraine and NATO partners on the sharing of knowledge and insights from the war in Ukraine, whose technologists and armed forces are constantly evolving capabilities to address a variety of threats from Russia. UK Defence Innovation is informed by lessons from Ukraine, sharing knowledge internationally through NATO DIANA and AUKUS Pillar 2.

Under Programme LYRA, we are informing future defence and security innovation with the Government of Ukraine, sharing what works and what doesn't.

We are building a sustained defence industrial partnership between the UK and Ukraine which will develop industrial capacity while supporting UK and Ukrainian security. The 100 Year Partnership between the UK and Ukraine facilities the rapid pursuit of sustainable production to create a dynamic ecosystem of defence innovation.

We recognise that Ukraine's experience in defending itself against large-scale aggression represents a unique and valuable resource for the development of modern defence capabilities. We are committed to promoting the systematic integration of Ukraine's operational experience into military training, doctrinal development, and capability planning.

We will stand with Ukraine for as long as it takes.

The Secretary of State for Defence continues to work closely with the Government of Ukraine and NATO partners on the sharing of knowledge and insights from the war in Ukraine, whose technologists and armed forces are constantly evolving capabilities to address a variety of threats from Russia. UK Defence Innovation is informed by lessons from Ukraine, sharing knowledge internationally through NATO DIANA and AUKUS Pillar 2.

Under Programme LYRA, we are informing future defence and security innovation with the Government of Ukraine, sharing what works and what doesn't.

We are building a sustained defence industrial partnership between the UK and Ukraine which will develop industrial capacity while supporting UK and Ukrainian security. The 100 Year Partnership between the UK and Ukraine facilities the rapid pursuit of sustainable production to create a dynamic ecosystem of defence innovation.

We recognise that Ukraine's experience in defending itself against large-scale aggression represents a unique and valuable resource for the development of modern defence capabilities. We are committed to promoting the systematic integration of Ukraine's operational experience into military training, doctrinal development, and capability planning.

We will stand with Ukraine for as long as it takes.

The Secretary of State for Defence continues to work closely with the Government of Ukraine and NATO partners on the sharing of knowledge and insights from the war in Ukraine, whose technologists and armed forces are constantly evolving capabilities to address a variety of threats from Russia. UK Defence Innovation is informed by lessons from Ukraine, sharing knowledge internationally through NATO DIANA and AUKUS Pillar 2.

Under Programme LYRA, we are informing future defence and security innovation with the Government of Ukraine, sharing what works and what doesn't.

We are building a sustained defence industrial partnership between the UK and Ukraine which will develop industrial capacity while supporting UK and Ukrainian security. The 100 Year Partnership between the UK and Ukraine facilities the rapid pursuit of sustainable production to create a dynamic ecosystem of defence innovation.

We recognise that Ukraine's experience in defending itself against large-scale aggression represents a unique and valuable resource for the development of modern defence capabilities. We are committed to promoting the systematic integration of Ukraine's operational experience into military training, doctrinal development, and capability planning.

We will stand with Ukraine for as long as it takes.

On 17 March 2026, the UK and Ukraine signed an enhanced security and defence industrial declaration, which strengthens collaboration between Ukrainian and British defence innovators.

The UK has delivered seven successful trade missions to Ukraine, bringing together UK industry and likeminded European partners to discuss opportunities for long-term cooperation and investment, and to promote greater collaboration with defence industrial companies inside Ukraine.

The Secretary of State for Defence is committed to fostering collaboration between Ukraine, British and European industry. In cooperation with trade association ADS, the UK has delivered seven successful Trade Missions to Ukraine, bringing together UK industry and likeminded European partners to discuss opportunities for long-term cooperation and investment, and to promote greater collaboration with defence industrial companies inside Ukraine.

This month, I led the largest trade mission, with the UK welcoming five European partners and a record 35 UK companies from primes to SMEs, offering a range of innovative solutions.

Last year we announced that the UK will manufacture and jointly develop cutting-edge military equipment with Ukrainian industry through a groundbreaking new technology sharing agreement. This tech sharing agreement is called Programme Lyra.

The Secretary of State for Defence is committed to strengthening collaboration between Ukrainian, British and European defence innovators. In cooperation with trade association ADS, the UK has delivered seven successful Trade Missions to Ukraine, bringing together UK industry and likeminded European partners to discuss opportunities for long-term cooperation and investment, and to promote greater collaboration with defence industrial companies inside Ukraine.

This month, I led the largest trade mission, with the UK welcoming five European partners and a record 35 UK companies from primes to SMEs, offering a range of innovative solutions.