PSD’s Richard Coleman caught up with Paul Hutton, most recently CEO of Cranfield Aerospace Solutions, who shares his insights in this guest blog.

For decades, defence primes have thrived in a world of long procurement cycles, stable requirements, and predictable delivery milestones. But today, new technologies are being deployed on the battlerfield within weeks or months, often at a fraction of the traditional cost. Commercial drones adapted for ISR or strike roles, AI-enabled targeting systems, and low-cost attritable assets are proving decisive. At the same time, they’re exposing the sluggishness of conventional defence procurement and development models.

The Battlefield Reality

This creates a profound dilemma for established defence primes. Their customers are now demanding agility, adaptability, and speed. Yet defence primes remain structurally geared toward risk-averse, multi-year programmes and incremental upgrades. The instinct of many boards has been to respond with what looks like innovation. For example, creating “innovation hubs” or appointing successful executives from within to head up new growth areas. But leaders who excelled at running established OEM businesses rarely bring the skills, mindset, or urgency required to build something entirely new at start-up pace. Primes risk treating innovation as a side project while the world moves fast around them. Protecting legacy revenues while experimenting at the margins is no longer enough.

The start-up surge

Meanwhile, the new wave of entrants, like Anduril and Helsing, are energised by venture capital, software-first mindsets, and an appetite for disruption. But many will falter. Scaling in the defence sector is not like scaling in consumer tech. Certification, integration with legacy platforms, long-term sustainment, and the complexity of defence customer relationships demand experience and resilience. Start-up leaders who cannot adapt beyond their initial ideas risk burning bright but short.

Bridging the divide

So how should defence primes respond? First, they must accept that disruption is real and accelerating. The instinct to protect legacy revenues while “experimenting” at the margins is not enough. Second, they need leaders who can bridge both worlds. Not simply innovators with bright ideas, nor long-tenured executives who know only the traditional model. Those who have built and scaled companies at start-up speed, yet also understand the regulatory, operational, and customer complexities of defence and aerospace. These are the people who can combine entrepreneurial agility with institutional discipline, avoiding both the complacency of incumbents and the naivety of pure start-ups.

The risk of getting it wrong

If primes continue to treat innovation as a side show, start-ups will outpace them in relevance, and customers will look elsewhere for answers. The opportunity, however, is significant. By blending speed with experience, defence companies can seize the moment — not only to stay competitive, but to redefine what innovation in defence truly looks like.