Building future forces and using modern technologies to meet with rising international strife and changing geopolitical balances
Speech by Mr Philip Dunne, Minister for Defence Equipment, Support and Technology.

Introduction
Your Highnesses, Your Excellences, ladies and gentlemen.
It鈥檚 an honour to be invited to speak at such a significant event in the international defence calendar鈥nd on a topic that鈥檚 at the forefront of everyone鈥檚 minds鈥
Churchill: lessons on innovation
Last month, Britain marked the 50th anniversary of Winston Churchill鈥檚 death鈥
鈥 man whose visionary approach to innovation鈥ncluding the use of tanks and radar鈥
鈥ombined with his resolute belief in standing up to aggression when faced with the existential threats of his time鈥 鈥ave Britain and her allies the vital edge that would help them win both world wars.
In 1943 Churchill famously observed that, 鈥渢he empires of the future will be empires of the mind.鈥
And, as I stand here before you, today, his words ring clearly and presciently across the decades.
Innovation key to success in this challenging era
A couple of thousand kilometers northwest of Abu Dhabi, Daesh militants continue their brutal campaign of murder and repression across northern Iraq and Syria.
Even closer by growing insurgencies in Libya and Yemen threaten further instability to the region.
Insurgencies are spreading in Africa, again in the name of Islamic extremism, as the barbaric Boko Haram are moving across national borders beyond Northern Nigeria to threaten neighbouring countries鈥
鈥nd only yesterday another atrocity committed by Al-Shabab in Somalia.
And now on the borders of Europe, a resurgent Russia having annexed the Crimea from Ukraine, now shows little respect for ceasefire agreements it helps negotiate one week in Eastern Ukraine only to help break the next.
And across the world, we see weapons proliferation, the relentless advance of cyber warfare, non state actors pedaling an expansionist global ideology, rogue states, and traditional military advantage being undermined by disruptive technologies.
Gone are the days of Cold War certainty鈥nd in this new world order鈥ust as Churchill foresaw鈥ow more than ever鈥t will be our attitude to innovation that determines whether we sink or swim on the tide of progress.
It will be our attitude to innovation that gives us the confidence to face the unpredictable threats of the future.
Just as it will be innovation that delivers the value for money鈥nd the military productivity鈥hat are the key to raising military outcomes in a world of challenging defence budgets.
The UAE has, of course, embraced this notion wholeheartedly, designating 2015 as its 鈥淵ear of Innovation鈥.
And, this month, His Highness Mohammed Bin Rashid Al Maktoum gave a stark warning when he wrote: 鈥渢he choice is simple: innovate or become irrelevant.鈥
Innovation: front and centre of UK thinking to secure the future
His point is not lost on the UK鈥
While innovation in defence has reference to everyone in this room and in this region, I would like to start my remarks by setting the importance of innovation within the context of how we have innovated within the UK鈥
Where鈥s our forthcoming Strategic Defence and Security Review (SDSR) looms large on our horizon鈥
鈥nd as we adjust to the new realities of this post Afghanistan era鈥
鈥nnovation is at the forefront of our thinking鈥
鈥ouching on everything we do:
from high level strategy and policy, introducing next generation capability,
investing in cutting edge science and technologies, to undertaking transformational business change and, of course, developing our people.
Fortunately, we have some momentum behind us鈥
Since coming into office, almost five years ago we have undertaken the most radical transformation of defence since the Cold War.
In tandem with updating our National Security Strategy鈥
鈥ur Prime Minister established a National Security Council to coordinate security issues across the UK government鈥
鈥ur 2010 Strategic Defence and Security Review established a roadmap for the recalibration of what had become an outdated and unwieldy defence machine鈥
鈥o we could look forward and be better positioned to meet the threats of the 21st Century head on.
Reform: laying the groundwork for successful innovation
But before we could do anything meaningful, we had to clear the decks.
So we sorted out our balance sheet in the UK Ministry of Defence鈥ith 拢38 billon [$50 billion] worth of inherited unfunded commitments, many in the equipment space, together over-committing more than 100% of our annual budget鈥
We cut old platforms which were expensive to maintain, some already beyond their service design life鈥
We reduced our manpower, with administrative roles reduced at over twice the rate of the frontline.
And we got to grips with our big ticket procurement projects, curbing delays and cost overruns.
Once we鈥檇 got the legacy of runaway procurement out of our system, we turned our attention to the problems that had caused it鈥nd started the painstaking process of building a better, more secure future for defence.
We have restructured our forces鈥
鈥reating a scalable, modular, and fundamentally joint approach to provide us with the flexibility and agility that our volatile world demands鈥
鈥stablishing amongst other things a cyber domain within our Joint Forces Command.
We devolved budgets to the single services鈥
鈥nsuring the men and women who really understand what鈥檚 required now take responsibility, and with that accountability, for spending decisions.
Finally, we overhauled our infrastructure, procurement and most recently logistics organisations鈥njecting them with much needed private sector expertise.
They now are adopting a more commercial approach鈥nsuring we are a more intelligent customer; one able to get high quality equipment at best value for the taxpayer, making our defence dollars achieve more for less.
It鈥檚 been a major programme of radical transformation in UK defence鈥nd it鈥檚 not over yet鈥 as while we have made the major decisions, much of the implementation is yet to come through to deliver our Future Force 2020.
But we are already starting to reap the benefits.
Equipment coming on stream
Over the past year alone we鈥檝e made a steady stream of investment in next generation capability鈥nd have introduced new capability into service.
On land, this has included the biggest armored fighting vehicle order for the British Army in a generation, a 拢3.5 billion ($5.4 billion) contract for almost 600 highly advanced Scout specialist vehicles鈥he British Army鈥檚 first fully digitalised armoured vehicle.
At sea, we saw the floating up of the Royal Navy鈥檚 flagship Queen Elizabeth Carrier, followed by the decision that it will be joined in service by our second operational aircraft carrier鈥
鈥e started building 3 new offshore patrol vessels鈥
鈥nd only last Friday our Prime Minister announced an 拢859 million ($1.3 billion) investment in long lead items for the first 3 of our next generation Type 26 Global Combat Ship frigates.
Beneath the oceans, we launched HMS Artful, the third of 7 Astute class hunter killer submarines.
The Royal Air Force received the first A400M Atlas transport aircraft, which will become the backbone of one of the most modern air mobility military fleets in the world.
Our first new RC-135 Airseeker (Rivet Joint) surveillance aircraft came into service, cutting its operational teeth immediately over Iraq.
And just this month, 17 Squadron Royal Air Force, began operational testing of the UK鈥檚 first F35 Lightning II in California.
Our helicopter fleets had a stand out year in terms of bringing new or improved capability into service, with all 3 services receiving additions to their fleets, with Puma Mk2 and Mk6 Chinooks for the RAF, new Merlin Mk 2s for the Royal Navy and Wildcats for the army.
While in the growing unmanned space we introduced our new Watchkeeper, the army鈥檚 next generation unmanned aerial system, into service in Afghanistan.
So, as we approach our next Strategic Defence and Security Review鈥 despite the ever changing threat environment鈥
We can plan with much greater confidence鈥afe in the knowledge that we have secure foundations of a more agile, flexible force structure with next generation capability funded to serve our defence needs as these evolve. But, complacency is the enemy of progress.
And today I want to focus briefly on 3 key things that, I believe, we must strive to do, not just to survive this current tidal wave of international strife and geopolitical flux鈥
But to ride it鈥 and to do so with you, our allies and partner nations in the Gulf.
First: continue investing in innovation
The first imperative is to grasp every opportunity to invest in scientific and technological innovation.
And here I鈥檓 not just talking about incremental changes to existing capabilities for each of us鈥
But also the emerging technologies and thinking that will defeat the threats of tomorrow.
For instance, how can we harness the power of big data analytics鈥nd the 鈥渋nternet of everything鈥濃o best effect?
How can we exploit the potential of autonomy and robotics for future unmanned platforms?
And what about the use of intelli gent, self healing, self adjustable networks鈥?
In the UK today, we take this very seriously, which is why, we鈥檙e investing in world class science and technology鈥
鈥rotecting our annual investment in science and technology鈥o it remains at least 1.2% of the defence budget鈥
鈥nd investing an increasing amount of that on research into game-changing capability鈥
This year we spent 10% of our science and technology budget researching disruptive technologies 鈥nd next year, we plan to increase that by 50%.
We are already developing novel high risk, high potential benefit innovations on everything from kinetic complex weapons to sensor navigation and guidance.
But we are also researching new technologies which allow intelligent analysis of social media to help identify new threats as they emerge.
What鈥檚 more, we鈥檙e channeling our investment more intelligently.
By devolving equipment capability setting to the single services, each now has greater responsibility to direct its investment dollar in to the systems of the future.
So, for instance, the Army is currently working with our Defence Science and Technology Laboratory (Dstl) on a host of projects such as 鈥
鈥ctive Integrated Protection Systems (AIPS)鈥 devices designed to offer vehicles both 鈥渉ard鈥 active defence鈥y physically intercepting incoming projectiles鈥nd 鈥渟oft鈥 active defence鈥hrough the use of electronic countermeasures.
And, crucially, the development of Generic Vehicle Architecture鈥
a concept that has been successfully applied to Scout SV and Foxhound鈥
but one that has even greater potential to鈥
鈥educe logistical complexity and costs鈥
鈥ncrease functionality, adaptability and safety鈥 鈥nd better prepare our armed forces鈥
鈥cross all domains鈥or all contingencies.
But it鈥檚 not just about having capability鈥t鈥檚 what you do with it that counts鈥
鈥hich is why we鈥檝e restructured our armed forces鈥nd it鈥檚 why we鈥檙e breaking new ground with innovations like the British Army鈥檚 new 77 Brigade鈥
鈥 nascent unit responsible for the integration and delivery of all non lethal and non military effects on military operations鈥ncluding the delivery of information warfare, psychological operations and deployed media operations.
Drawing heavily on lessons learned in Afghanistan, it鈥檚 testament to our growing understanding that it鈥檚 not only science and technology that will help us succeed in this new Information Age.
Second: investing in people
Which brings me to my second point: The importance of investing in people.
World beating capability is all well and good.
But it鈥檚 people who interpret the intelligence gathered by our ISTAR capabilities.
It鈥檚 people who generate innovation and engineer the solutions.
It鈥檚 people who provide the moral framework within which we operate.
And it鈥檚 people who achieve information superiority through cunning insights, strong will, and the confidence and training to employ new and innovative skills.
In short, it鈥檚 our people who provide the vital spark that sets us apart from our adversaries.
And, in this fiendishly complex world, the demands we make upon our men and women will only intensify.
That鈥檚 why our first capability priority must be to recruit, train, develop and retain high quality and adaptable personnel who can out think our adversaries by working together, increasingly through tri-service cooperation, and exploit our assets to best effect.
But, of course, it鈥檚 not just British military personnel I am talking about here.
The key to success is making use of our whole force鈥rawing on all the talent and expertise on offer鈥
鈥rom regulars and reservists, contractors, civil servants, and other government departments鈥o industry, academia, the third sector and, of course, our international allies.
Third: collaboration
Which brings me to my third point鈥he strand that draws everything together: collaboration.
Because we can鈥檛 get the most out of our armed forces鈥
鈥e can鈥檛 develop and sustain the right equipment鈥
鈥nd we can鈥檛 use that equipment in the most effective way, without co-opting all of our assets and building strong working relationships right across the board.
In UK defence, we鈥檝e spent the last 5 years doing just that.
We鈥檝e seen it with the creation of our Joint Cyber Reserve Unit鈥
鈥mploying some of the country鈥檚 best brains to help us develop a full spectrum military cyber capability.
And with the creation of our Defence Cyber Protection Partnership, a collaboration between government and industry that seeks to build national resilience to cyber attack.
We鈥檝e seen it with the introduction of private sector skills to defence procurement, infrastructure and logistics services鈥
鈥nd with cross government and third sector collaboration on international defence engagement.
Above all, we鈥檙e seeing it when it comes to technological innovation鈥
鈥ecause in a world of the most rapid technological advance we have ever witnessed, it鈥檚 now often in the civilian sphere and in small and medium sized enterprises (SMEs) that the latest innovation is found.
We need to tap that talent鈥nd we are doing so now.
That鈥檚 why in the UK we鈥檙e encouraging defence primes to open up their supply chains鈥
鈥nd encouraging non UK domiciled defence primes to look to the UK defence and security supply chain, which is the broadest and deepest outside the US, with more companies than in Germany, France and Italy combined, 80 of them exhibiting at IDEX this week鈥.
鈥hese efforts will smooth the path for SMEs鈥rom all sectors鈥o help provide the niche capability, the groundbreaking ideas and the enterprise that makes the difference between top-class capability and world beating capability.
And, that鈥檚 why, through a new initiative in the UK called the Defence Growth Partnership, we鈥檙e providing a collaborative environment for the collective effort of industry, government and academia to focus on making the UK defence industry more sustainable and more competitive鈥
鈥stablishing world class centres of excellence鈥
鈥ble to provide leading edge capability for our armed forces and international customers.
This is just a snapshot of activity.
But collaboration purely within the UK鈥s no silver bullet.
In times of squeezed resources and burgeoning threats鈥o nation can afford to go it alone.
The importance of international collaboration
If we want to stay at the very forefront of global innovation鈥
鈥nd if we鈥檙e to remain ahead of our adversaries鈥
鈥e must pool our resources more widely and collaborate on an international scale.
Building an international tapestry of full spectrum capability鈥hat is balanced, coordinated and, good value for money.
And ensuring that not only our capability鈥ut our armed forces鈥an work together鈥
Sharing information, common understanding, common command and control arrangements, common standards and common doctrine and procedures.
Whether it鈥檚 great coalitions of countries operating seamlessly together鈥s we saw in Afghanistan鈥
鈥s we have seen off the coast of Somalia with counter piracy collaboration鈥
鈥 as we have seen in the Baltic States鈥
鈥 and as we are seeing in our anti-Daesh campaign鈥 where the UK is by some margin the second largest contributor, after the US, to the air campaign over Iraq鈥
Or countries training and exercising and basing together鈥
鈥s we鈥檝e seen with the British Army鈥檚 51 Brigade training and joint exercise programme across the Gulf鈥 including Cougar 14鈥 the Advanced Tactical Leadership Course (ATLC), at Al Dhafra Air Base鈥 the RAF鈥檚 permanent presence in Al Minhad鈥 and the Royal Navy鈥檚 new base in Bahrain.
Whether it鈥檚 developing cutting edge capability bilaterally鈥s we鈥檙e seeing with Anglo-French cooperation on the development of Unmanned Combat Air Systems.
鈥r multinationally鈥ith the Meteor missile coming into service and the Eurofighter Typhoon where I look forward to announcing further air to ground strike capability, tomorrow, at IDEX .
Logic鈥acked up by historical experience鈥ells us that when it comes to guarding our security, our stability and prosperity鈥
We can save money
We can save time
And we can magnify our effect.
By working together.
Conclusion
So鈥f we are to build future forces fit for the 21st Century鈥
鈥e must invest in innovation
鈥e must invest in our people
鈥ut above all鈥e must continue to invest in each other鈥s nations.
Pooling our resources鈥
Sharing information鈥
Leveraging our strengths鈥
鈥itigating our weaknesses
And galvanising the mutual trust that is the linchpin upon which strong and successful international cooperation rests.
Building not just forces but partnerships fit for the 21st century.
Partnerships鈥ased on shared interests and forged, not only in a shared past, but in a shared future.
And, for the UK, nowhere is this more important than here, in the Gulf鈥here we have a refreshed strategy and a renewed commitment to stepping up our engagement and cooperation with every one of our Gulf partners鈥
鈥eflecting as our Foreign Secretary said at Manama in December, our clear understanding in this globalised world that: 鈥測our security is our security; your prosperity is our prosperity; your stability is our stability.鈥
So over the next few days, I hope we can all seize this unique opportunity provided by IDEX to build on that understanding.
In the words of Churchill: 鈥 Moving forward together with our united strength.鈥
Or as David Cameron my Prime Minister might say: 鈥淲orking together to secure the future for us all.鈥