Defence tech executives back Britain as Europe’s investment capital
Key Points
- The United Kingdom is leading the charge in European defence technology investment.
- According to research by White & Case, 97% of defence decision makers see the UK as the leading destination for investment in Europe.
- The defence sector is changing from high-procurement, low-growth to a high-growth sector due to investment in next-generation technology.
- Key areas of focus are cybersecurity, advanced sensors, space technologies, and autonomous drones and uncrewed systems.
The UK defence technology sector is booming, with 97% of defence decision-makers seeing the UK as the leading destination in Europe for defence technology investment.
This is according to new research from White & Case, which surveyed 250 senior decision-makers in the UK defence and military sectors.
The research found that of those surveyed, 94% said they expect to spend more than £50 million in capital expenditure and investment over the next 12 months, and 97% said they plan to raise significant external funding in the next year.
This data shows that defence is becoming a high-growth sector through technology investment, and the United Kingdom is leading the charge for this growth in Europe.
The key drivers of this growth in the UK include demand for next-generation technology, export opportunities, and rising government defence spending.
Technology is defining investment, with 56% of surveyed companies planning to invest in next-generation defence technologies over the next year.
For those intending to invest in next-generation defense technology, key areas of focus are cybersecurity, advanced sensors, space technologies, and autonomous drones and uncrewed systems.
The most commonly cited applications for these technologies are air defense, counter-drone and intelligence, surveillance, and reconnaissance.
With this shift in the defence sector comes new challenges, such navigating investment in systems based on intellectual property which is not necessary held in the UK.
“The defense technologies attracting the most investment, such as advanced sensors and autonomous platforms, are areas where IP ownership, data rights and licensing structures can be most commercially contested,” said White & Case IP and Technology Partner Michael Evans.
“That complexity is often compounded when the relevant systems integrate AI capabilities.”
“IP rights are therefore increasingly central to defense transactions, particularly on complex projects involving partnerships between national industry champions across multiple allied nations,” he said.
