Abstract
Innovation research increasingly highlights the importance of collaboration, inclusion and knowledge exchange within innovation ecosystems, yet participation remains uneven, particularly in complex and highly regulated sectors such as defence. This paper considers the Defence Technology Exploitation Programme (DTEP) 2023-2026 as an exploratory case of state-led innovation system design intended to support SME participation through matched grant funding, structured collaboration and brokerage mechanisms. The study investigates how programme design may influence collaboration, technological progression and capability development within the UK defence innovation ecosystem.
Drawing on a mixed-methods case study approach, the analysis combines qualitative evidence from programme monitoring and stakeholder feedback with quantitative data from the Innovate UK Impact Management Framework. The dataset covers 17 funded projects, with matched baseline and closure-stage data available for 12 projects at the point of analysis. Findings are interpreted cautiously as early signals of change rather than evidence of causal impact.
The findings suggest that DTEP may help reduce barriers to SME engagement by facilitating collaboration between SMEs, higher-tier partners and government stakeholders. Evidence indicates improved knowledge integration, technological progression and organisational capability development, with most projects reporting increases in Technology Readiness Levels and early signs of growth in innovation-related activity. Participants also reported benefits relating to market understanding, collaboration opportunities and technology alignment with defence requirements. However, outcomes remain uneven, and selection effects associated with matched funding may influence participation and observed benefits.
The paper contributes to debates on inclusive innovation by presenting DTEP as a policy experiment that shapes the conditions of participation within a defence innovation system. It argues that structured collaboration and brokerage can create enabling conditions for more inclusive innovation, while highlighting the need for longitudinal research to assess longer-term and system-level impacts.