North East investors support new defence cluster promoting region as sector hotspot

Efforts are currently in progress to establish the North East as a national centre for cutting-edge defence technologies, all thanks to the inception of a new cluster organisation.

Named the North East Regional Defence and Security Cluster (NERDSC), this initiative has garnered support from recent industry investors in the region. Notable contributors include the Italian aerospace firm Leonardo, the Irish virtual reality company VRAI, and Rafael, the Israeli company that acquired Pearson Engineering and Responsive Engineering. Additionally, key backers consist of contractor QinetiQ and its subsidiary Naimuri, Airbus and Lockheed Martin, which is considering potential investments in the region.

The primary objective of NERDSC is to attract further investment to the region and provide support to existing entities seeking to secure defence and security contracts. Prior to its formal launch scheduled for January next year, NERDSC plans to establish a “knowledge hub” dedicated to sharing best practices and insights in areas like effective business development and bid writing for national and international defence projects. This initiative specifically targets small and medium-sized enterprises (SMEs) that may encounter challenges when seeking opportunities within the sector. Moreover, NERDSC intends to organise innovation challenges aimed at harnessing the region’s research and development capabilities.

The formation of this cluster coincides with a promising period for the region’s defence industry. Recent developments include the establishment of the Defence Science and Technology Laboratory (Dstl) in Newcastle, dedicated to AI and data science research. Furthermore, Leonardo’s decision to open a base in Newcastle, Rafael’s acquisitions along the banks of the Tyne River and the acquisition of Alnwick-based start-up NORSS by contractor giant Raytheon have all contributed to the region’s burgeoning defence sector.

Dr Simon Harwood, UK capability and innovation director at Leonardo, said: “The North East of England is poised to emerge as a hub for the nation’s digital defence research and technology. By creating this new cluster, we can help drive investment, boost regional productivity and contribute to the security of the UK while generating fantastic new career opportunities for local people.”

The Ministry of Defence (MoD) and the Defence and Security Accelerator (DASA) are also supporting the cluster, alongside local stakeholders such as Invest Newcastle (part of NewcastleGateshead Initiative), RTC North, North East LEP, Business Durham and Tees Valley Combined Authority.

Jim Pennycook, defence industry partner at the MoD Defence and Security Accelerator, commented: “The North East has a well-established history of manufacturing, research, development, and innovation expertise in support of UK military capability. We expect the NERDSC will have a pivotal role in advancing the North East’s position in the global defence and security ecosystem. We look forward to working with the cluster to accelerate innovation in core areas such as advanced manufacturing, data science, electrification and sustainable defence.”