In today’s fast-moving defence landscape, the line between civilian and military innovation is increasingly blurred. Dual-use technology—solutions with both commercial and defence applications—now sits at the heart of the UK’s national security and industrial policy. From artificial intelligence and quantum computing to sustainable energy and biotechnology, these innovations are transforming how the UK protects its interests while stimulating economic growth. This provides a significant advantage to the UK, strengthening both national security and economic growth.
Under the UK Defence Industrial Strategy and Strategic Defence Review (SDR) 2025, the Ministry of Defence (MOD) and the relevant government department responsible for defence innovation and procurement are building stronger links with private-sector innovators. The goal is clear: to keep the UK Armed Forces at the forefront of capability while nurturing a world-leading technology ecosystem at home. The MOD’s strategy includes a forward-looking approach to technology adoption and capability development, ensuring the UK remains competitive in a rapidly evolving defence environment.
Want to uncover live dual-use opportunities? Explore current MOD tenders on Defence Contracts Online.
What Is Dual-Use Technology and Why It Matters for Defence
Dual-use technology refers to innovations that can serve both civilian and military purposes—whether that’s a commercial drone adapted for battlefield logistics or an AI model designed for financial analysis being retrained to support intelligence operations.
These technologies matter because they accelerate capability development and reduce cost. The MOD increasingly sources cutting-edge tools from the same sectors driving Britain’s broader digital and green economy.
Examples shaping UK defence today include:
- Artificial Intelligence (AI): Used for predictive maintenance, data analytics, and decision support.
- Autonomous Systems: Drones and ground robots offering reconnaissance, supply delivery, and hazard detection.
- Satellite & Space Technologies: Dual-use earth-observation systems supporting both environmental and defence missions.
- Cybersecurity Solutions: Commercial tools for encryption and threat detection protecting military networks.
- Green Technologies: Clean fuels and advanced materials enhancing operational resilience and sustainability.
Best practice in procurement ensures that dual-use technologies meet both civilian and defence requirements, supporting compliance and effective delivery for all customers.
For defence suppliers, understanding these intersections is essential. With access to DCI’s Defence Intelligence, organisations can identify emerging technologies, anticipate procurement priorities, and align early with MOD needs. It is also crucial to understand the needs of MOD customers when developing dual-use solutions, as early engagement and customer focus can provide a competitive edge in securing contracts.
UK Defence Strategy and the Shift Toward Dual-Use Capabilities
The UK’s modern defence policy is explicitly built around collaboration with the private sector. Both the Defence Industrial Strategy and SDR 2025 highlight that innovation is now as likely to emerge from a start-up as from a traditional defence prime.
To capitalise on this, the government is investing in frameworks that fuse national security goals with economic growth:
- A “whole-of-nation” approach, integrating industry, academia, and regional clusters—including security clusters, which are regional defense and security groups that facilitate collaboration and innovation between government and industry—into defence delivery.
- Establishment of the UK Defence Innovation (UKDI) organisation—committing at least £400 million annually to harness commercial innovation for military use.
- A mandate that 10% of the MOD’s equipment budget supports novel and dual-use technologies each year.
This shift creates a major opportunity for suppliers beyond the traditional defence base. By using DCI’s Defence Procurement insights, businesses can track new frameworks, anticipate calls for technology trials, and position early for collaboration.
SDR 2025: Opportunities for Dual-Use Innovators
The Strategic Defence Review 2025 marks the most significant procurement reform in decades. It calls for faster adoption of innovation, reduced bureaucracy, and wider participation from non-traditional suppliers.
Key features include:
- Segmented procurement models enabling rapid contracting—from two-year major projects to three-month “rapid exploitation” routes for commercial tech.
- Smarter pathways designed specifically for SMEs, with streamlined onboarding and simplified contracts.
- Dedicated funding via UKDI and the Defence Innovation Loans scheme to help innovators scale solutions from prototype to deployment.
Suppliers can become involved in new procurement frameworks and agreements under SDR 2025 by participating in these segmented models and taking advantage of the streamlined processes designed to encourage wider engagement.
For dual-use companies, the message is clear: defence is open for business. Whether you develop AI, cyber solutions, or sustainable energy systems, SDR 2025 has created mechanisms to engage, trial, and sell into the MOD ecosystem faster than ever before.
The Rise of Defence Procurement Technology and Dual-Use Integration
Modern procurement systems are the engine behind this transformation. Through the Procurement Act 2023, defence buying is becoming more transparent, digital, and data-driven—reducing barriers to entry and enabling real-time market engagement. On these platforms, buyers and suppliers interact directly, and it is essential for suppliers to be registered to access opportunities and for buyers to manage procurement activities efficiently.
Procurement technology supports dual-use integration by:
- Enhancing visibility: Platforms like the Defence Sourcing Portal make it easier for new suppliers to find and bid on tenders. Being registered on an official source such as the DSP increases company visible to MOD buyers.
- Improving efficiency: Automated e-tendering tools speed up evaluation and compliance, benefiting SMEs. A range of services and resources are available to support both buyers and suppliers throughout the process.
- Increasing resilience: Digital supply-chain mapping helps identify critical dependencies and diversify suppliers. These platforms provide details on different aspects of the supply chain to strengthen resilience.
- Driving ethical assurance: Built-in compliance checks ensure dual-use technologies meet security and Responsible AI standards. Compliance information is published on official pages for transparency.
MOD’s publishing of contract opportunities on official sources ensures transparency and access to a wide range of business opportunities for suppliers and buyers alike.
Emerging Tech Categories with Dual-Use Potential
AI, quantum technologies, and digital twins remain top priorities for MOD investment. Each offers crossover benefits—commercial advances feeding directly into defence capability. The MOD aims to lead in the adoption and integration of these emerging technologies, setting a strategic direction for innovation within the defence sector.
Procurement Reforms Supporting Tech Adoption
Reforms under the Procurement Act encourage “spiral upgrades” and open-architecture design, allowing continuous tech insertion and keeping the forces at the technological edge.
For suppliers, tools such as DCI’s Defence Intelligence provide visibility into these reforms, helping businesses adapt proposals and certifications to match evolving procurement criteria. Suppliers are also subject to specific eligibility and registration requirements on MOD procurement platforms.
Accessing Dual-Use Innovation Funding in the UK Defence Sector
Funding is central to sustaining innovation momentum. The UK now offers multiple pathways for dual-use companies to move from concept to contract. A company can benefit from these funding pathways to accelerate innovation and enhance its opportunities within the defense sector.
Top Funding Channels to Watch in 2025
- Defence and Security Accelerator (DASA): Grant-based competitions supporting early-stage dual-use ideas.
- Defence Innovation Loans: Low-interest financing for SMEs to commercialise tested prototypes.
- National Security Strategic Investment Fund (NSSIF): Equity investment for high-potential dual-use startups.
- Regional Defence Growth Deals: Local partnerships targeting innovation clusters across the UK, supporting innovation in the civil sector alongside defence and security.
How to Position Your Innovation for Defence Adoption
- Align projects with MOD capability priorities—AI, cyber, quantum, and sustainability.
- Demonstrate scalability and dual-market viability.
- Secure relevant certifications (Cyber Essentials Plus, ISO 9001).
- Engage early through DASA open calls or innovation challenges.
DCI’s Defence Procurement service helps businesses monitor funding rounds and match live tenders to their core capabilities, enabling them to identify and pursue new business opportunities in the UK defence sector.
How Dual-Use Technology Strengthens Defence Supply-Chain Resilience
Supply-chain resilience has become a central concern for national security. The pandemic and recent conflicts exposed the risks of over-reliance on global supply networks.
Dual-use innovation addresses this by broadening the supplier base and embedding flexibility. Civilian technologies—such as advanced manufacturing, renewable energy, and AI-enabled logistics—can be repurposed rapidly for defence use when required. These efforts enhance the overall resilience and adaptability of the defence supply chain, making it more robust against disruptions.
The MOD is investing in:
- Domestic manufacturing capacity for strategic materials and semiconductors.
- Digital supply-chain tools that provide real-time visibility across supplier tiers.
- Collaborative frameworks encouraging SMEs and universities to contribute innovation directly.
Suppliers can track such developments and monitor risk exposure with DCI’s Supply Chain Monitoring platform—helping ensure readiness and compliance across every contract tier.
The Role of DCI in Connecting Dual-Use Suppliers to Defence Contracts
As the MOD expands its partnerships with non-traditional suppliers, visibility is everything. That’s where Defence Contracts Intelligence (DCI) plays a pivotal role. DCI also provides a single point of contact for suppliers seeking to engage with MOD and industry partners, streamlining communication and fostering collaboration.
Through powerful market-analysis tools, early-warning systems, and sector-specific intelligence, DCI enables dual-use companies to:
- Access thousands of live and upcoming defence contract opportunities.
- Receive tailored alerts matching their technology domain.
- Understand procurement frameworks and compliance requirements in advance.
- Track emerging funding and policy trends shaping MOD demand.
Want to connect with live MOD opportunities? Request a demo today
Challenges Dual-Use Suppliers Face in Entering the Defence Market
While the opportunity is vast, entering the defence market brings its own challenges:
- Regulatory Compliance: Export controls and ITAR restrictions require robust governance.
- Security Accreditation: Cyber Essentials Plus and facility clearances are often mandatory.
- Procurement Complexity: Navigating framework agreements and bid cycles demands preparation, including understanding contract value thresholds that determine publication requirements and available opportunities within MOD procurement processes.
- Ethical and Legal Considerations: Dual-use AI and biotech must align with MOD ethical principles and international law.
The solution lies in early engagement. DCI’s intelligence platform helps suppliers pre-qualify, identify relevant frameworks, and approach opportunities with confidence.
Future Trends in Dual-Use Technology for Defence
Looking ahead, dual-use innovation will define the next decade of UK defence capability. The most significant growth areas include:
- Artificial Intelligence & Machine Learning: Enhancing autonomous systems, logistics, and cyber defence.
- Quantum Computing & Sensing: Delivering next-generation navigation and secure communications.
- Engineering Biology & Biotech: Enabling advanced medical, material, and resilience applications.
- Green Energy Solutions: Reducing operational dependence on fossil fuels.
- Space Technology: Expanding the UK’s sovereign satellite and ISR capabilities.
These sectors sit firmly within SDR 2025 priorities—where defence and industry innovation advance hand in hand.
Key lessons learned from previous dual-use technology initiatives highlight the importance of collaboration, adaptability, and rapid integration, informing the direction of future defence innovation.
Getting Ahead With Dual-Use Technology
Dual-use technology is reshaping not only how the UK defends itself but also how it grows its economy. The integration of commercial innovation into defence strategy represents a generational shift—one that rewards agility, collaboration, and foresight.
For suppliers, the moment to act is now. With government policy, funding, and procurement reform all converging, the path into defence has never been clearer.
Discover how DCI can help you navigate it. Schedule a free demo
