UK Defence Innovation (UKDI), launched on 1 July 2025, unites expertise from previously separate organisations to accelerate the delivery of cutting-edge innovative capabilities, ensuring the United Kingdom remains secure at home and strong abroad. With ringfenced annual funding of at least £400 million, UKDI consolidates innovation efforts across the Ministry of Defence (MOD) to rapidly deliver new technology to the front line and support the growth of a robust defence technology industry.

UKDI serves as a catalyst for growth in the defence, security, and dual-use technology sectors, contributing to the governments aims by creating highly skilled jobs and driving economic growth. Since July 2026, UKDI has been transitioning into its fully designed operating model, with the financial year 2026/27 serving as a transitional period focused on scaling delivery, embedding performance management, and demonstrating measurable impact against Defence outcomes.

The new Defence acquisition model establishes a single, coherent route for innovation from idea to delivery, embedding innovation within core decision-making processes rather than treating it as a parallel activity. Innovation is mandated at every stage—including problem statements, options development, commercial design, commissioning, and delivery—to ensure the early exploitation of novel technologies. UKDI prioritises and funds innovation alongside all other Defence activities, operating within the same strategic frameworks and governance while maintaining the necessary freedoms to operate at pace.

UK Defence Innovation (UKDI), launched on 1 July 2025, unites expertise from previously separate organisations to accelerate the delivery of cutting-edge innovative capabilities, ensuring the United Kingdom remains secure at home and strong abroad. With ringfenced annual funding of at least £400 million, UKDI consolidates innovation efforts across the Ministry of Defence (MOD) to rapidly deliver new technology to the front line and support the growth of a robust defence technology industry.

UKDI serves as a catalyst for growth in the defence, security, and dual-use technology sectors, contributing to the governments aims by creating highly skilled jobs and driving economic growth. Since July 2026, UKDI has been transitioning into its fully designed operating model, with the financial year 2026/27 serving as a transitional period focused on scaling delivery, embedding performance management, and demonstrating measurable impact against Defence outcomes.

The new Defence acquisition model establishes a single, coherent route for innovation from idea to delivery, embedding innovation within core decision-making processes rather than treating it as a parallel activity. Innovation is mandated at every stage—including problem statements, options development, commercial design, commissioning, and delivery—to ensure the early exploitation of novel technologies. UKDI prioritises and funds innovation alongside all other Defence activities, operating within the same strategic frameworks and governance while maintaining the necessary freedoms to operate at pace.

UK Defence Innovation (UKDI), launched on 1 July 2025, unites expertise from previously separate organisations to accelerate the delivery of cutting-edge innovative capabilities, ensuring the United Kingdom remains secure at home and strong abroad. With ringfenced annual funding of at least £400 million, UKDI consolidates innovation efforts across the Ministry of Defence (MOD) to rapidly deliver new technology to the front line and support the growth of a robust defence technology industry.

UKDI serves as a catalyst for growth in the defence, security, and dual-use technology sectors, contributing to the governments aims by creating highly skilled jobs and driving economic growth. Since July 2026, UKDI has been transitioning into its fully designed operating model, with the financial year 2026/27 serving as a transitional period focused on scaling delivery, embedding performance management, and demonstrating measurable impact against Defence outcomes.

The new Defence acquisition model establishes a single, coherent route for innovation from idea to delivery, embedding innovation within core decision-making processes rather than treating it as a parallel activity. Innovation is mandated at every stage—including problem statements, options development, commercial design, commissioning, and delivery—to ensure the early exploitation of novel technologies. UKDI prioritises and funds innovation alongside all other Defence activities, operating within the same strategic frameworks and governance while maintaining the necessary freedoms to operate at pace.

Recruitment is underway for Director General Innovation within the National Armaments Director Group, who will oversee UK Defence Innovation and Dstl.

UKDI has now completed all pre-tender activities within their remit and is in the process of handing over the collated information to National Armament Director Group (NADG) Data & Digital. This will enable the project to progress and allow the necessary resources to advance the Commercial, Integration, and Delivery activities required to meet UKDI’s demand.

The UKDI Rapid Innovation Team (RIT), established in July 2025 as part of the formation of UKDI and evolving from the former Future Capability Innovation team within the legacy DE&S organisation, is tasked with exploring innovative technologies and novel ways of working.#

It is responsible for introducing the 3-2-1 Procurement Model and utilises industry mission partners alongside output-based requirements to rapidly develop Minimum Viable Products, which are quickly iterated into Minimum Viable Capabilities for end users.

The RIT has rapidly advanced the concept of One Way effectors (OWEs), transferring related business-as-usual activities to NAD-M, where a new Delivery Team was formed in the spring.

Continuing its innovation efforts, the RIT is also developing drone capabilities in collaboration with UK companies, focusing on enhancing range, performance, and payloads to meet specific mission requirements, while simultaneously strengthening UK supply chains and manufacturing opportunities.

The UKDI Rapid Innovation Team (RIT), established in July 2025 as part of the formation of UKDI and evolving from the former Future Capability Innovation team within the legacy DE&S organisation, is tasked with exploring innovative technologies and novel ways of working.#

It is responsible for introducing the 3-2-1 Procurement Model and utilises industry mission partners alongside output-based requirements to rapidly develop Minimum Viable Products, which are quickly iterated into Minimum Viable Capabilities for end users.

The RIT has rapidly advanced the concept of One Way effectors (OWEs), transferring related business-as-usual activities to NAD-M, where a new Delivery Team was formed in the spring.

Continuing its innovation efforts, the RIT is also developing drone capabilities in collaboration with UK companies, focusing on enhancing range, performance, and payloads to meet specific mission requirements, while simultaneously strengthening UK supply chains and manufacturing opportunities.

This UK Defence Innovation (UKDI) competition is run on behalf of the Ministry of Justice (MOJ), His Majesty’s Prison and Probation Service (HMPPS), the Ministry of Defence (MOD), the Nuclear Decommissioning Authority (NDA), the Home Office, the Police, Innovate UK, and wider UK security stakeholders.

It is seeking proposals that offer innovative, low-collateral solutions to counter or defeat hostile drones targeting secure sites and locations. Drones, or ‘uncrewed aerial systems’ (UAS), pose a growing challenge when used for contraband delivery, surveillance and disruption near prisons, sensitive sites or critical national infrastructure, including in congested urban areas.

The users for the solutions would include HMPPS security teams, MOD, police, law enforcement agencies, and operational staff, these groups need solutions to work alongside existing ‘last line of defence’ technology that are activated when other mitigation measures fail.

Technologies in this area are developing rapidly. UKDI is keen to understand how innovation can keep up with the pace of development while remaining legally and ethically compliant, fully considering operational constraints, and integrating easily into existing security frameworks such as the Regulation of Investigatory Powers Act (RIPA), SAPIENT (Situational Awareness and Preparedness for Improved Operational Effectiveness and Efficiency), the Prison Act 1952, and the Police Act 1997. The calling notice can be found on GOV.UK.

UK Defence Innovation (UKDI) will support high-tech businesses across the UK, including the North west. The ringfenced budget of £400 million for 2025-26 will focus on novel technologies, including dual-use systems.

UKDI will invest in structures to support business growth and to increase investment into SMEs, start-ups, and non-traditional defence suppliers to support a diverse and agile supply chain across the UK.

UK Defence Innovation (UKDI) will continue invest in structures to support business growth and to increase investment into SMEs, start-ups, and non-traditional defence and security suppliers to support a diverse and agile supply chain and ensure delivery of pioneering capability to national security and defence.

The UKDI - Defence and Security Accelerator (UKDI_DASA) is a Special Partner in the delivery of The Defence and Security (D&S) Seed Fund portfolio, which is funded by the Ministry of Defence (MOD) and sits within UK Innovation and Science Seed Fund (UKI2S). UKI2S is a Pre seed and Seed fund for defence and Security SMEs with investment from MOD for SME innovation looking for private equity funding.

The UKDI - Defence and Security Accelerator (UKDI_DASA) supported by Innovate UK Loans Ltd (Innovate UK) delivers a Defence funding competition: the Defence Innovation Loan. This service provides an opportunity for single Small and Medium Enterprises (SMEs) with solutions to defence themed problems to apply for a Defence Innovation Loan of between £100,000 and £1 million with a below market interest rate of 7.4% per annum

UK Defence Innovation (UKDI) will continue invest in structures to support business growth and to increase investment into SMEs, start-ups, and non-traditional defence and security suppliers to support a diverse and agile supply chain and ensure delivery of pioneering capability to national security and defence.

The UKDI - Defence and Security Accelerator (UKDI_DASA) is a Special Partner in the delivery of The Defence and Security (D&S) Seed Fund portfolio, which is funded by the Ministry of Defence (MOD) and sits within UK Innovation and Science Seed Fund (UKI2S). UKI2S is a Pre seed and Seed fund for defence and Security SMEs with investment from MOD for SME innovation looking for private equity funding.

The UKDI - Defence and Security Accelerator (UKDI_DASA) supported by Innovate UK Loans Ltd (Innovate UK) delivers a Defence funding competition: the Defence Innovation Loan. This service provides an opportunity for single Small and Medium Enterprises (SMEs) with solutions to defence themed problems to apply for a Defence Innovation Loan of between £100,000 and £1 million with a below market interest rate of 7.4% per annum

UK Defence Innovation (UKDI) represents a fundamental transformation of how the Ministry of Defence approaches innovation. We recognise that innovative companies, start-ups and non-traditional defence suppliers have long faced significant barriers when engaging with defence innovation programmes.

UKDI will invest in frameworks and initiatives to foster business growth and attract increased investment into SMEs, start-ups, and non-traditional defence suppliers. This approach aims to cultivate a diverse and agile supply chain, ensuring the delivery of cutting-edge capabilities to support national security and defence. Simultaneously, these efforts will align with the UKDI's strategic objectives of advancing the technology sector and driving economic growth.

UK Defence Innovation (UKDI) represents a fundamental transformation of how the Ministry of Defence approaches innovation. We recognise that innovative companies, start-ups and non-traditional defence suppliers have long faced significant barriers when engaging with defence innovation programmes.

UKDI will invest in frameworks and initiatives to foster business growth and attract increased investment into SMEs, start-ups, and non-traditional defence suppliers. This approach aims to cultivate a diverse and agile supply chain, ensuring the delivery of cutting-edge capabilities to support national security and defence. Simultaneously, these efforts will align with the UKDI's strategic objectives of advancing the technology sector and driving economic growth.

UK Defence Innovation (UKDI) represents a fundamental transformation of how the Ministry of Defence approaches innovation. We recognise that innovative companies, start-ups and non-traditional defence suppliers have long faced significant barriers when engaging with defence innovation programmes.

UKDI will invest in frameworks and initiatives to foster business growth and attract increased investment into SMEs, start-ups, and non-traditional defence suppliers. This approach aims to cultivate a diverse and agile supply chain, ensuring the delivery of cutting-edge capabilities to support national security and defence. Simultaneously, these efforts will align with the UKDI's strategic objectives of advancing the technology sector and driving economic growth.

UK Defence Innovation launched on 1 July 2025 and expects to be fully operational by July 2026. Work continues at pace on implementing, transitioning, and operationalising the full system. The Strategic Defence Review set out clear priorities for defence, with a strong emphasis on the need for rapid delivery of innovation. The launch of UK Defence Innovation will help to deliver a modern, resilient, and technologically advanced force by accelerating innovation, supporting strategic autonomy, and driving collaboration across defence, industry, and academia.

A decision on the delivery model for a Defence Research and Evaluation (DRE) organisation has not yet been made and will be aligned with the National Armaments Director (NAD) Group organisational design as part of Defence Reform. Details of which will be announced in due course. The Strategic Defence Review stated that in forming the DRE the Department may wish to keep the Dstl brand. Dstl is a widely respected brand internationally and nationally. Dstl has been part of the NAD Group since April, and Dstl’s CEO reports to the National Armaments Director. Dstl is an Arms Length Body (ALB), but its status is being reviewed as part of a review of ALBs and the work to form the NAD Group.

The UK Defence Innovation organisation will not be an ALB. It will report to the National Armaments Director as part of the wider NAD Group.

As we have set out in our Defence Industrial Strategy (UKDI), the Government is committed to ensuring that the benefits of defence investment are felt in every nation and region of the UK.

Decisions over future UKDI spending will be confirmed through the Defence Investment Plan.

The role of UKDI CEO is currently being assessed to understand the full extent of its responsibilities and accountabilities. Once this evaluation is complete a salary scale will be agreed according to the market rates for a position of this scope.