The incubator's first company, Rho-C, is based on technology developed in the company's submarine business.

Keith Swindon, CEO of Rho-C, a new company spun out of BAE Systems

UK defence and aerospace company BAE Systems has launched an incubator to create companies from research and technologies developed in-house.

The incubator, called Launchpad, seeks to move defence technologies beyond prototype into independent startups. BAE Systems will take equity stakes in the companies it spins out, said a company spokesman.

The first company established by the Launchpad programme is Rho-C, a technology that enables the transmission of power and data through solid materials. The technology, developed by BAE Systems’s submarine business, eliminates the need to drill holes for wires. It is expected to have application in the oil and gas industry, where wires can easily be severed. Rho-C is closing its first VC funding round.

The incubator will also work with academic researchers and technology experts to co-create businesses. Technologies it is looking at include quantum clocks for radar and hyperspectral sensing, an imaging technique that captures detailed information on materials and objects.

BAE Systems invests in external startups but does not have a dedicated VC arm. Its most recent investment was in Oxford Dynamics, a UK defence tech startup making AI for battlefield systems.

The launch of the incubator aligns with the UK government’s Defence Industrial Strategy, which includes increased spending on defence.

Kim Moore

Kim Moore is the editor of Global University Venturing and deputy editor of Global Corporate Venturing and produces video for the website.