The role of small/medium size enterprises (SMEs) in the defence and security supply chain has received increased attention in recent years as frontline users seek new and disruptive ways of achieving 'operational advantage'. There is a consensus that SMEs - often exploiting dual-use technologies in fields such as autonomy, robotics, artificial intelligence and data analytics - have much to offer defence through their ability to innovate and iterate customer-focused solutions with a pace and agility that larger prime contractors can simply not replicate. However, there is also a recognition that these smaller businesses must confront a series of challenges and barriers that have historically prevented them from fulfilling their potential in the defence market. Organisations like the UK Ministry of Defence (MOD) still tend to procure the vast majority of equipment and services from a smaller number of much larger prime contractors who are judged by their financial strength and the depth of engineering resources available to deliver large and complex programmes.
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