UK defence and security is in the middle of a period of rapid transformation, with increasing geopolitical uncertainty, trade tariffs and evolving security needs that influence the policy and economic agendas. Steven Wood, aerospace, defence, and security lead at Digital Catapult, examines the issue at hand.
Balancing the security and defence needs of the UK amid a complex international environment requires a considered strategy that accounts for the actions of adversaries as much as it does allies.
While the evolving landscape could prompt decision-makers and defence leaders to focus on addressing shortages in specific areas, the one aspect that many fail to consider is the value of data.
Effective use of defence and security data could prove to be the missing piece in the UK’s defence and security strategy, ensuring that the UK’s defence and security sectors are successful in both the short and the long term.
Countering systemic constraints in the sector
Considering current defence and security priorities, one might consider ways to mobilise key sectors and overcome shortfalls in the UK’s innovation landscape, but this will not be an easy feat. In the UK, government funding for research and development is lower than other countries in the OECD, with government spending on R&D projects representing 0.57% of GDP, below the average of 0.63%, and the UK also has just three of the most active R&D investment companies from the top 100 globally.
The lack of investment and institutions mobilising R&D may not, on the surface, seem detrimental to the UK’s defence and security capabilities, but when compounded by skills gaps, material shortages, and broader lack of capital and land, the impact on the UK’s defence and security success is not insignificant.
As it stands the British armed forces, and other organisations, are struggling to recruit at the levels necessary to sustain growth and innovation. In 2023, 48% of defence employers reported shortages in engineering skills, 33% in cyber and digital, and 25% in manufacturing and mechanical skills, highlighting the breadth of skills shortages within the sector.
Moreover, about two thirds of the UK’s semiconductor companies focus on design while outsourcing their manufacturing, resulting in a heavy reliance on foreign suppliers, making the UK vulnerable to international supply chain disruptions. The UK cannot afford to neglect the resources it has at its disposal in the immediate term, including its vast amount of manufacturing data that can be applied to the defence and security sectors.
Unlocking a critical asset for UK defence and security: data
When it comes to solving defence and security challenges, several different options can be considered to expand current capabilities. But one long-neglected option is the use of data, particularly its application in the defence and security supply chain. Critical to preparedness in the event of a crisis is the country’s ability to manufacture, produce and deploy innovative solutions.
Access to rich data on products, materials, and necessary skills, is therefore essential for tracking, planning, optimising, and preparing assets and equipment for defence and security scenarios.
The manufacturing of defence assets, equipment, and technologies, as well as leveraging the advanced capabilities of artificial intelligence (AI) and machine learning, and using predictive analytics based on rich historical data, gives the UK an opportunity to overcome these obstacles to strengthen the sector.
The combination of traditional industrial expertise and digital innovation will drive smarter decision-making, enhanced productivity, and reduced operational inefficiencies. By integrating these capabilities, the UK can create a more resilient, sustainable, and globally competitive manufacturing ecosystem that adapts quickly to market demands and future challenges, mitigating shortfalls such as the availability of skills and resources.
Driving innovation and collaboration in the sector
At Digital Catapult, we support businesses in the defence and security space by providing access to cutting-edge innovators and digital tools through our specialist accelerator programmes, centred around key themes such as industrial supply chain transparency and resilience.
Our work has demonstrated the value of exploiting data and deep tech innovation to enable greater traceability, efficiency, and resilience across supply chains, including those in the defence and security sectors. By fostering greater collaboration between industry, government, and academia, our interventions empower startups and SMEs to innovate with emerging technologies.
To date, our supply chain initiatives alone have supported over 40 startups and SMEs, helping them secure more than £3m ($4.5m) in funding, accelerating their growth and harnessing their ideas to strengthen the UK’s defence supply chain by deploying agile, data-driven solutions.
To build true resilience in the UK’s defence and security sector, we must move beyond traditional siloed thinking and harness the power of data to connect, inform and drive action across the entire supply chain. By breaking down barriers between stakeholders, embracing digital innovation, and investing in the smarter use of resources, the UK can respond more effectively to future challenges.
