Marking Small Business Saturday on 6 December 2025, the Ministry of Defence set out how £35 million of Defence and Security Accelerator support since July 2024 is moving SME innovations-including blast‑protection blocks and laser‑detection optics-towards frontline use, with an emphasis on dual‑use capability.
DASA, working with the Defence Science and Technology Laboratory, described how funding has taken proposals from early prototypes to fielded equipment, with many projects designed to serve both defence requirements and civilian sectors such as healthcare, transport and telecommunications.
Policy delivery is now anchored in the new UK Defence Innovation organisation. Established on 1 July 2025, UKDI has a ringfenced annual budget of at least £400 million and is expected to reach full operating capability by July 2026. The Strategic Defence Review 2025 also requires that a minimum of 10% of the MOD’s equipment procurement budget is spent each year on novel technologies, supported by a segmented acquisition model that includes rapid commercial exploitation in as little as three months.
For smaller firms, the principal entry route remains DASA’s Open Call and its Defence Rapid Impact track. Current 2025 cycle documents set out eligibility, assessment and contracting rules, signalling a steady pipeline for proposals that can be progressed to trials and early adoption where they meet defined user needs.
Case studies illustrate regional spread. In Scotland, QuickBlock’s modular building system-initially a civilian product-has been adapted with DASA backing to deliver rapidly assembled structures rated for ballistic and blast protection following trials with end‑users.
In Wales, Swansea University spin‑out Trauma Simulation has developed whole‑body training models now used on the Military Operational Specialist Teams Training course, providing Combat Medics and Medical Emergency Response Teams with a realistic, repeatable way to rehearse critical interventions.
In the South West, Sentinel Photonics-founded by former Dstl scientists-has grown to around 20 staff with DASA support. According to official statements, its optics attachments that protect eyesight from lasers and reduce the risk of detection have been integrated with KS‑1 rifles as they enter service.
The wider economic picture points to measurable spill‑overs. DASA’s 2025 Impact Report identifies nearly £974 million in gross value added since 2019, the creation of 1,842 jobs across supported companies, and £174 million raised in 2024 alone-an indication that publicly backed innovation is drawing in further private and public investment.
Procurement reform is being paired with broader SME access measures. Ministers have announced a Defence Office for Small Business Growth and a plan to lift direct MOD spending with SMEs by an additional £2.5 billion by May 2028, with policy statements indicating a total of £7.5 billion to be spent directly with SMEs by 2028.
Scale and timing matter for delivery. The UK counted 5.64 million small businesses at the start of 2025, up on 2024. For suppliers and contracting authorities, the immediate markers are the 10% novel‑technology share of the equipment budget now set in the Review, UKDI’s formal establishment on 1 July 2025 and its expected full operating capability by July 2026.