
Defence Innovation case study
“Building Britains Defence Unicorns“
The initiative forms part of a wider ambition to make the UK the best place to start and grow a defence business.
Backed by the MOD’s commitment to increase SME spending by 50% by May 2028 – an additional £2.5 billion, bringing total SME spend to £7.5 billion – this programme is a cornerstone of broader reforms to unlock defence for the next generation of innovators.

focus
The UK Government’s Defence Industrial Strategy supports getting innovative technologies to frontline uses more quickly and expanding access for SMEs and scale-ups.
Supporting these contracts will support regional growth, job creation and sustainable communities. The scheme provides fast-tracked contracts to small, high-potential British companies, many of which had little or no prior engagement with defence.

SOLUTION
Thirteen companies, drawn from across England, Scotland and Wales, will develop advanced capabilities spanning quantum sensing, autonomous systems, secure communications, space manufacturing and synthetic training.
All thirteen companies are SMEs, with the smallest only having a single employee. These awards enable innovative firms to scale their ideas into deployable solutions that meet real operational needs.

IMPACT
Beyond immediate contracts, the programme provides a launchpad for long-term growth. Winning companies gain credibility and momentum to attract further private investment, helping them scale rapidly and realise their full potential.
With Commercial X at it’s core, the MOD is redefining procurement to be fatser, more inclusive, and more responsive, ensuring the UK remains at the forefront of defence capability and innovation.
“This is an example of what rapid, open procurement looks like in practice. Work in the hands of small British businesses that can move fast and deliver real capability for our Armed Forces.”
“With the MoD committed to an additional £2.5 billion in SME spending by 2028, the infrastructure must match the ambition. The Neutral Vendor Framework for Innovation, delivered by Constellia with Commercial X, exists to do exactly that. These 13 companies show what becomes possible when the right businesses get access to the right opportunities.”



