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Defense ministries in Israel, the United States, and the United Kingdom are reshaping how new technologies enter military service, placing startups and agile innovation at the forefront. Moving away from traditional, lengthy acquisition cycles centered on large contractors, these countries are adopting models that prioritize speed, flexibility, and close collaboration with smaller tech firms.
In Israel, the IDF have intensified their engagement with startups, especially in maritime technology. This approach emphasizes adapting early-stage innovations to meet operational needs rapidly, often resulting in what they call “operational exits”—deploying systems for military use even if they are not yet commercial products. Startups are engaged through targeted tenders, unsolicited proposals, or by repurposing existing solutions for naval applications, such as autonomous platforms and sensors. This strategy also supports supply chain resilience by reducing reliance on foreign manufacturers.
In addition, specifically in terms of Israel, the iHLS Innovation Center’s INNOFENSE Program, in collaboration with IMoD, constitute a key entity in the matter – they work toward supporting the development of the startups and their products, many of which later find their way to operational uses by the IDF.
Similarly, the U.S. Army is implementing a venture capital-inspired funding model that accelerates acquisition timelines, enabling quick evaluation and field testing of emerging technologies, often within weeks. This marks a shift toward integrating startups earlier in the development process to maintain technological advantage against rapidly evolving threats.
Adding to this global trend, the United Kingdom exemplifies how startup collaboration can be scaled through targeted competitions and regional innovation hubs. Recently they have addressed challenges of critical battlefield needs, such as life-saving medical technologies. They focus on rapid funding and fostering connections between startups, prime contractors, academia, and local governments—ensuring that innovation reaches operational use efficiently.
Together, these efforts represent a significant shift from traditional procurement toward dynamic partnerships with the startup ecosystem. By streamlining funding, shortening development cycles, and promoting regional collaboration, defense agencies are better equipped to harness emerging technologies and maintain operational readiness in an increasingly complex security landscape.
For more information about the INNOFENSE Program, click here.
