Midlands defence and cyber clusters could drive national security growth

A new report has outlined how the Midlands’ cyber and defence clusters could boost regional and national economic growth through enhanced collaboration.

The document draws on findings from a high-level roundtable held earlier this year and examines how more than 600 businesses across these sectors are becoming increasingly connected. The report suggests that stronger collaboration across the region could create a single, pan-regional cluster with national importance for security and economic development.

The Midlands possesses a complete ecosystem spanning from innovation assets with advanced research and development capabilities to end-users, backed by a substantial Ministry of Defence presence. This positions the region well to speed up innovation and commercialisation in key national security technologies.

Regional strengths in quantum, advanced manufacturing and 5G are highlighted in the report, supported by institutions including the Centre for Defence Engineering at Cranfield University, De Montfort’s Cyber Technology Institute, and the University of Nottingham’s Centre for the Study of Subversion. These organisations provide an innovation ecosystem ready for further investment.

The opportunity emerges alongside increased government support for the defence sector, with funding from the Defence and Security Accelerator and MoD-backed innovation loans of up to £2 million already helping businesses scale research and development and bring solutions to market.

The report examines four themes: business and investment, innovation, talent, and market access. It presents eight strategic recommendations to unlock the region’s potential, including professionalising cyber security to strengthen defence supply chains, making funding more accessible to SMEs, expanding market access for Midlands suppliers, and developing more flexible apprenticeship models whilst accelerating security clearance processes.

This represents the latest in a series of Midlands Engine cluster reports. It has formed the foundation for further work on the region’s defence sector, which was the focus of a second roundtable held in May. That discussion brought together government, industry and academic partners, including the MoD, and will inform a forthcoming Defence Sector in the Midlands report to be taken forward by the Manufacturing Technology Centre (MTC) as the Midlands Engine approaches closure.

The report notes: “Throughout December 2024 and January 2025, Midlands partners came together a series of roundtables to explore the investment potential of some of the biggest clusters in our region – from aerospace to cyber and defence, nuclear energy to space technologies. These roundtables have shaped the development of a series of white papers exploring the key strengths, assets, challenges and growth areas for each key industrial cluster, outlining policy levers of cluster growth and showcasing the work of key companies.”