Thursday 07 May 2026 5:55 am  |  Updated:  Wednesday 06 May 2026 3:42 pm

This accidental Finnish defence startup can teach the UK some lessons

By: Eliot Wilson

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The UK is home to some of the world’s most significant defence companies, but also its most innefficient procurement systems. The story of Finnish startup Kelluu offers some valuable lessons, writes Eliot Wilson

One of the most profound lessons of the war in Ukraine, since it went from hybrid, proxy conflict to a full-scale land war, has been that technological change is rapid and unpredictable. It has mainstreamed unmanned aerial vehicles (UAVs), and drone warfare is now part of every aspect of combat.

This should be great news for the defence industry. New and evolving technologies and a NATO-wide commitment to spending five per cent of GDP on security and resilience will drive countries to the marketplace, even if some of them are relying on maxed-out credit cards. The UK’s defence sector is significant: we have the world’s sixth-biggest manufacturer, BAE Systems, as well as Babcock International, Rolls-Royce and QinetiQ, and major facilities owned by overseas companies like Leonardo UK, Airbus and Rheinmetall.

The UK also has one of the most sclerotic, inefficient, unaccountable and change-resistant procurement systems in Europe. The most notorious current grotesquerie is the Ajax armoured fighting vehicle: the Ministry of Defence awarded the contract to General Dynamics in 2010 and the first vehicles should have been delivered in 2017. A running score of delays, including trials which had to be halted because of excessive noise and vibration making soldiers ill, has meant that full operating capability will not........

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