Why SMEs are vital to win the cUAS innovation battle

Ben Hewitt had a successful career in the RAF, specialising in the understanding, design and implementation of C-UAS strategies.  He then spent 3 years as the campaign manager for Leonardo’s NATO proven cUAS system (Falcon Shield) before becoming the Head of Sales and Marketing for Metis, who are experts in the design and manufacture of RF and drone detection systems.  Ben has been at the forefront of helping design and deliver adaptive security solutions to protect high-value, risk-prone areas by integrating innovative technologies to mitigate both aerial and ground-based threats.

Recent operational experience demonstrates how quickly drone threats and the Tactics Techniques and Procedures utilised can and are evolving, from UAS delivering contraband into prisons to the deployment of low-signature and fibre optic controlled drones across the evolving battlefield. Yet defence procurement leaders have yet to fully grasp the fact that to combat such rapid battlefield innovation, you require equally agile SMEs to rapidly design, develop, test and refine effective counter-UAS (cUAS) solutions.   Ben discusses the key benefits of defence engaging SMEs to win the cUAS innovation battle.

Agility & Speed: SMEs pivot quickly when threats change. Development cycles that took years with primes can be done in months. As the UK MoD warns, “we must be faster and more agile, else we risk losing strategic advantage”. SMEs routinely iterate hardware and software on short timelines. For example, they can release quarterly firmware updates or new detectors in weeks. With fewer bureaucratic layers, they can field-test prototypes with frontline users immediately (as shown in rapid-fire exercises and “dragons’ den” pitch events). University experts confirm there is a “huge drive” across NATO to deploy counter-drone systems urgently, and agile suppliers are best placed to meet it.

Focus on Innovation: Small teams concentrate on solving a specific challenge. Many cUAS startups were founded by engineers or ex-military who identified gaps in detection or defeat capabilities. This laser focus leads to cutting-edge features that larger firms might lack the expertise to develop. Defence strategy documents emphasise that modern warfare demands “exploiting the very latest technological advances” something SMEs with agility, value for money and customer focus deliver. Indeed, a recent UK parliamentary debate praised SMEs at research parks (e.g. quantum, materials, sensors) as world-class innovators who thrive when given the opportunity.

Cost-Effectiveness: Lean operations mean SMEs often undercut primes on price. They have lower overheads and can price hardware and support more competitively, especially for urgent needs. Analyses of the cUAS market note the huge civilian sector (airports, prisons, infrastructure) demands “robust and cost-effective” systems. SMEs tailor exactly to these market niches without the cost buffer required by larger primes. In addition, because their cash flow hinges on customer success, SMEs often offer strong post-deployment service and updates, such as subscription-based software for continual improvement that incentivises higher quality support.

SMEs also rely on customers adopting more agile and faster procurement cycles. Their business models are built around rapid contracting, quicker decision timelines, and shorter purchasing loops. This allows them to innovate quickly and deliver solutions at pace—but it also requires customers to engage in more flexible procurement processes that align with SME speed.

Customer Collaboration: Smaller companies typically work closely with users (soldiers, border guards, event security teams). They often involve end-users early on, learning the real combat or operational needs. UK initiatives like DASA’s competitions and IDEaS Sandboxes explicitly bring SMEs together with military experts and operators for direct feedback. This partnership ensures systems hit the target. For instance, a UK team’s “Dragons’ Den” events have let SMEs pitch novel cUAS ideas straight to MOD decision-makers, turning many concepts into funded projects. In short, SMEs lean on user-focused design, yielding solutions more fit-for-purpose than off-the-shelf prime technologies.  SMEs are also very adept at working in collaboration with primes to meet their specific needs.

Economic & Sovereign Value: Beyond tech, using SMEs strengthens the local industrial base – a stated policy goal. Every SME contract keeps money (and specialist knowledge) in the country. For example, the UK notes that involving more home-grown SMEs directly benefits regional economies and social value metrics. The Strategic Defence Review insists defence needs “partners outside Defence… from startups and scale-ups, to small and medium-sized enterprises”. In practice, SMEs supply job-rich specialist firms (like the Northern Ireland and Scotland communities highlighted in parliament) that larger primes would find difficult to sustain.

In the dynamic cUAS arena, playing it safe with established primes alone risks obsolescence. SMEs bring the very qualities defence needs right now: speed, innovation, focus and adaptability.  Defence procurement needs to seize this opportunity, challenge procurement norms and invite SMEs into early design reviews and help facilitate SMEs to work together or collaborate with larger primes to deliver the technological innovation required to sustain national security.  Critically, SMEs need funding for rapid prototyping (e.g. through innovation sprints) and modular contracts that allow small players to quickly pivot by leveraging emerging frameworks (DASA/DSTL competitions, DIU solicitations, NATO innovation initiatives) that specifically tap SME talent.  Remember that partnering with SMEs isn’t charity, it’s strategic. As one recent UK review concluded, cutting-edge threats demand cutting-edge suppliers, regardless of size.