Unlocking strategic advantage in the dynamic UK aerospace and defence landscape
A joint report by the University of Sheffield AMRC and EY-Parthenon examines one of the nation's key challenges: how to turn world-class defence innovation into real-world capability.
The report has found that without fundamental change, the UK’s wealth of innovation will remain locked away. It delivers a clear message: the challenge faced by the defence sector isn't a lack of ingenuity, but the absence of a system designed for speed, scale, and success.
Drawing on interviews, data, and case studies from some of the UK’s most influential defence leaders, the report uncovers the strategic action needed to unlock resilience and growth across the full value chain – and highlights how the AMRC can support this journey.
The research focuses on three critical pillars:
- Resolving supply and demand mismatches through improved transparency and adaptability in the supply chain.
- Enhancing agility and innovation by simplifying procurement and leveraging technologies like AI.
- Redirecting funding to support innovation and SME participation while reducing bureaucratic inefficiencies.
Mobilising industry for impact
A clear set of actions is captured in the report to mobilise the sector's ingenuity, while transforming it into sovereign capability and economic strength.
- Improving visibility: deploy earlier planning and increase supply chain transparency to identify the bottlenecks to scaling.
- Speeding up setup: use a joined-up planning approach across operational, financial and people aspects to fast-track scaling.
- Scaling faster – opening up prototyping and infrastructure: co-invest with government-funded research and development centres in test-beds, make SME access simpler and target future platform gaps.
- Reducing delays and frustration – digitalising innovation and qualification: pilot modular training and digital-first qualification with end-user input upfront to accelerate ideas into deployment.
- Unlocking funding – doing more with the same system: Map the grant/incentive landscape early and build internal capability to apply and deliver.