Partner Article

How the North East Regional Defence and Security Cluster is helping the region compete in the defence sector

By Lesley Hawke, Business Support Specialist, RTC North

Ten months on from the launch of the North East Regional Defence and Security Cluster (NERDSC), it feels like the right moment to reflect on what’s been taking shape across the region.

NERDSC was created with a clear intent: to help North East businesses play a meaningful role in a rapidly changing defence and security landscape, and in doing so, to contribute to long-term economic resilience, higher-value jobs and stronger communities. That ambition sits within the wider mission of RTC North , a B-Corp organisation to enable more businesses to innovate, grow and compete.

What I’ve seen over the past 10 months is that the North East is better positioned than many realise.

In the UK, defence spending is now firmly on an upward trajectory, with government commitments to increase it to 2.5% of GDP by 2030, alongside sustained investment in cyber, space, autonomous systems, clean energy and advanced manufacturing.

For the North East, this growth matters. The region already supports around 900 jobs linked directly to MOD expenditure and has an above-average concentration of firms operating in defence adjacent markets. More importantly, many of our manufacturing and digital businesses already possess the core competencies the sector increasingly demands, including precision engineering, advanced materials, software, data, systems integration, energy innovation and secure communications.

When you factor in the region’s fast-growing space and satellite capabilities, from earth observation and data analytics to advanced manufacturing for space applications, the opportunity becomes even clearer. Defence, security and space are converging, and the North East has the building blocks to compete in that future.

NERDSC exists to help businesses recognise that opportunity and to navigate the route into it with confidence.

One of the clearest lessons from our first year is that diversification into defence is rarely about inventing something entirely new. More often, it’s about translation.

Many SMEs underestimate how relevant their existing technologies, processes and expertise already are. Defence can feel opaque, risk-averse and difficult to access,  particularly for smaller firms. NERDSC’s role has been to lower those barriers, build understanding and create the conditions for collaboration.

That has meant working closely with businesses to:

Understand how their existing capabilities align with defence and security needs

Connect with primes, buyers, academics and policymakers who can open doors

Access innovation funding through routes such as the Defence and Security Accelerator

Learn how to operate confidently within defence supply chains

This isn’t about chasing contracts at any cost. It’s about helping firms make informed strategic choices that strengthen their business, diversify revenue and build long-term resilience.

Building an ecosystem

A defining feature of RTC North’s approach (and of NERDSC) is a commitment to ecosystem building, not short-term interventions.

Over the past 10 months, that has taken shape through a growing calendar of events and engagements designed to connect people, not just share information. From the cluster launch event that brought the region’s defence community into the same room for the first time, to regular networking sessions and targeted briefings, the focus has been consistent, creating trust, visibility and momentum.

Supporting North East businesses at DSEI UK, attending trials such as hydrogen power demonstrations at RAF Waddington, and ensuring representation at industry, academic and innovation showcases have all helped position the region as a serious, credible contributor to the national defence ecosystem.

But coordination is the real value here. By acting as a connector between SMEs, primes, universities, funders and government, NERDSC helps ensure that opportunities translate into outcomes and that growth is shared across the region.

Futureproofing through skills and STEM

Economic opportunity only becomes economic impact if the talent pipeline exists to sustain it.

Defence, security and space are long-cycle sectors. Decisions made today about skills, education and aspiration will shape the region’s competitiveness for decades. That’s why NERDSC’s work is inseparable from a wider commitment to STEM skills development, inspiring young people to see themselves in future careers that are high-value, purpose-driven and rooted in the North East.

Whether through engagement with education partners, showcasing real career pathways, or helping businesses articulate the social value of their work, this focus on people is central to RTC North’s mission. Strong businesses matter, but strong, inclusive economies are built on opportunity, aspiration and capability.

Looking ahead

The past 10 months have shown what’s possible when a region chooses to invest in coordination, confidence and capability.

The defence and security landscape will continue to evolve rapidly, technologies will change, threats will shift, but the underlying opportunity for the North East to build a more resilient, innovative and competitive economy is clear.

NERDSC is not the endpoint. It is part of a longer journey, one that aligns business growth with national priorities and economic success with social impact.

To find out more about how your business can engage with the cluster, visit the NERDSC website or follow our journey on the North East Regional Defence and Security Cluster's LinkedIn page 

This was posted in Bdaily's Members' News section by RTC North .