North East Tech Sector Preps for £400m UK Defence Innovation Fund Opportunity

Sunderland, UK – 2nd May 2025 – Sunderland Software City, a leading force in driving digital innovation and skills across the North East, has announced a new strategic partnership with Ruddy Nice, a renowned platform connecting global Aerospace, Blue Light and Space industries in XR, AI, Cyber, Training, and Education.
Entering the aerospace sector can be challenging, especially for startups or SMEs unfamiliar with procurement processes. However, the North East stands out as a national leader, with 15% of Ministry of Defence spending in the region going to SMEs, the highest proportion in the UK. This is a clear strength, highlighting the region’s agility, innovation, and ability to deliver.
The Government’s commitment to increase defence spending to 3% of GDP by 2027 represents an additional £6.4 billion investment, with a minimum of 10% of the equipment budget allocated to novel technologies, including AI-enabled tech. This strategic focus creates significant opportunities for innovative North East SMEs.
David Dunn, CEO of Sunderland Software City, said:
“At Sunderland Software City, we are actively seeking opportunities both nationally and internationally to help companies from the North East’s tech ecosystem grow. When we find them, we strive to make them accessible and impactful.”
Tess Butler, CEO of Ruddy Nice, added:
“Ruddy Nice is excited to collaborate with Sunderland Software City to help accelerate SMEs and genuine innovation into the aerospace industry. We understand the complexities of the systems and the costs involved, and we’re committed to reducing these challenges. This partnership is a step towards making the aerospace sector more accessible.”
Over the coming months, Sunderland Software City and Ruddy Nice will launch a series of initiatives to connect the North East tech sector with emerging aerospace opportunities. To stay informed and get involved, follow our channels and be part of the conversation.
About Sunderland Software City
Sunderland Software City empowers digital growth in the North East by connecting people, skills, and business opportunities. It supports startups, scale-ups, and enterprise through innovation programmes, expert advice, and ecosystem-building activities.
With savvy Aerospace marketing expertise and veterans with specialist sector know-how, Ruddy Nice are a strong squad that make an impact for each and every one of our global Defence and Aerospace clients.
Our core values are what we live and grow by; Delivering a meaningful, collaborative, and inclusive environment that enables Government, Industry, and Academia to drive change. We run an annual conference and year-round activities at The Studio fostering collaboration and capability development.
Media Contact:
Kai Richardson
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