UK Defence Innovation (UKDI) is set to invest more than £142m ($189m) into drone and counter-drone technology in its first year of operation.
The rapid investment includes £30m directed towards counter-drone systems intended to bolster security within the UK and support allies, following a rise in drone incursions linked to Russia across Europe.
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This announcement aligns with the Strategic Defence Review, which emphasised the need for the UK Armed Forces to adapt lessons from the conflict in Ukraine, including rapid advancements in uncrewed systems.
This year’s investment will cover 20 small and medium-sized enterprises (SMEs), 11 micro-SMEs and two academic institutions, all based in the UK. Many of the recipients have not been named.
UK Secretary of State for Defence John Healey stated: “The Strategic Defence Review was clear that we must learn the lessons of the war in Ukraine, which is why we’re surging investment into drone and counter-drone systems. Russia’s continued bombardment of Ukrainian civilians and their grey-zone drone incursions across Europe show why this drone drive is so urgent.
“In a new era of threat, this rapid investment will make the UK secure at home and strong abroad, while making defence an engine for growth, ensuring the UK is the best place in the world to start and grow a defence business.”
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By GlobalDataUKDI was launched as a central body for fostering innovation within the Ministry of Defence (MoD) by the Defence Secretary in July 2025.
With a designated annual budget of at least £400m, UKDI adopts new contracting methods that allow companies to accelerate the development of prototypes.
The 2025 investment in drone and counter-drone technologies includes more than £25m for the Royal Navy’s uncrewed AI submarine Excalibur and £20m for developing new laser weapon systems to complement DragonFire.
The Royal Navy also receives £7.5m for a full-sized autonomous helicopter to support future aircraft carriers, while £12m is allocated to develop an air-launched collaborative uncrewed air vehicle (UAV). £5m is allotted for the development of prototype autonomous land platforms for Army helicopter operations.
The rapid investment into emerging British uncrewed systems businesses comes alongside further commitments to industry through the Defence Industrial Strategy. The strategy sets out the UK’s aim to be the best place in the world to launch and grow a defence business.
In early 2025, the MoD confirmed a five-year allocation of £5bn for autonomous and laser weapon systems, with £4bn earmarked for uncrewed autonomous systems and £1bn for laser technology.
