General Atomics

UK aerospace R&D returns £14 for every £1 invested says ATI

Sustained investment in research and development, innovation, skills and advanced manufacturing is helping strengthen the sector’s international competitiveness.

ATI Group shot
Image: ATI

The UK aerospace sector is showing strong signs of continued growth, with its value increasing by $1 billion since 2024, and projections indicating that the market could double in value by 2035.

That is the view of the Aerospace Technology Institute (ATI), which published its latest Impact Report on 26 August. Additionally, sustained investment in research and development (R&D), innovation, skills and advanced manufacturing is helping to support this expansion and strengthen the sector’s international competitiveness, ATI added. The full report can be read here.

The report from ATI highlights the economic contribution of aerospace research and development (R&D) and the wider benefits generated by investment in new technologies.

Analysis by ATI indicates that every £1 invested in aerospace R&D could generate up to £14 in economic output over time, suggesting that the benefits of innovation extend beyond just the aerospace sector to the wider UK economy. During 2025/26, the ATI Programme invested £313 million through joint government and industry funding in aerospace research and technology projects across the UK.

Supported initiatives included work by small and medium-sized enterprises (SMEs) developing advanced manufacturing techniques, artificial intelligence, hydrogen-electric propulsion and technologies aimed at reducing aviation emissions.

ATI brings its total investment to £4.2 billion in 12 years

This latest investment brings total funding through the ATI Programme since its launch in 2014 to more than £4.2 billion. The programme is intended to help develop the technologies, industrial capabilities and supply chains required for UK companies to compete for future global aerospace programmes.

According to the report, these investments are also helping to attract private capital, improve productivity and support businesses of different sizes across the UK’s nations and regions. The regional dimension is particularly significant, as aerospace manufacturing and research provide highly skilled employment and contribute to local industrial economies.

The report also identifies a number of technology and industrial milestones achieved through ATI-backed research. It also points to the programme’s contribution to creating high-value jobs, strengthening productivity and supporting the aviation industry’s transition towards net zero emissions.

According to ATI, the economic case for continued investment in aerospace R&D therefore extends beyond immediate technological development. By helping companies reduce the risks associated with developing new technologies and accelerating their route towards commercialisation, public-private funding can support longer-term industrial investment and competitiveness.

The ATI Programme is delivered through a partnership involving the Aerospace Technology Institute, the Department for Business, Innovation, Science and Trade (BIST), and Innovate UK. Its activities form part of a broader effort to maintain and expand the UK’s position in the global aerospace industry.

With the sector already demonstrating measurable economic growth, the combination of public and private investment, technological innovation and skills development is expected to remain important to the UK aerospace industry.

The scale of funding committed since 2014 also underlines the strategic role attributed to aerospace R&D in supporting economic growth and preparing the industry for future technological and environmental challenges.

Related

First Islander from reshored Britten-Norman production line begins ground testing
Britten Norman UK built islander starts ground tests
First Islander from reshored Britten-Norman production line begins ground testing
The aircraft is expected to fly for the first time in September before being delivered to the Falkland Islands Government Air Service.
Aerospace

27 Aug 2026

Manchester Airports Group reports cyber security incident
Manchester Airport
Manchester Airports Group reports cyber security incident
Manchester Airports Group has reported a cyber security incident involving customer data, amid growing concern over cyber attacks in the UK.
Aerospace Security

27 Aug 2026

Unpublished DfT study strengthens case for tougher night-noise policy
London, England - November 2018: British Airways Boeing 777 jet (registration G-VIIJ) flying low over houses to land at London Heathrow Airport.
Unpublished DfT study strengthens case for tougher night-noise policy
New evidence on sleep disturbance and lost wellbeing could reshape how airport growth, noise thresholds and community mitigation are assessed.
Aerospace

27 Aug 2026

Cadets are helping young people build skills for life
Calvin Bailey MBE MP, Minister for Veterans and People at RAF Waddington
Cadets are helping young people build skills for life
Ahead of the UK’s inaugural National Cadets Week, adult volunteers and cadets across Lincolnshire and Essex are developing activities to help young people gain the skills that will stand them in good stead, whatever they choose to do in life.
Defence

27 Aug 2026

Royal Navy commanders receive advanced synthetic training in record time
UK Commando Force
Royal Navy commanders receive advanced synthetic training in record time
Delivered almost a year ahead of schedule, the Maritime Command and Staff Trainer (MCAST) is providing Royal Navy commanders with a virtual synthetic training system to run complex command, staff and operational exercises.
Defence Member News

27 Aug 2026

The Hawk was built in Britain. Its replacement may only be assembled here
Hawk T1 Jet
The Hawk was built in Britain. Its replacement may only be assembled here
Foreign-designed trainers are competing for the RAF requirement, leaving the UK to decide whether final assembly provides enough jobs, skills and sovereignty.
Defence

27 Aug 2026

Scottish space tech to power self-consuming rocket engine
Alpha Impulsion
Scottish space tech to power self-consuming rocket engine
Aurora Avionics is to supply crucial electronic systems that will deliver key electrical power functions for a pioneering new rocket engine, that aims to cut propulsion costs and support next-generation spacecraft.
Space

27 Aug 2026

STFC reveals latest Ernest Rutherford Fellows
space nebula
STFC reveals latest Ernest Rutherford Fellows
Backed by an investment of £6 million, seven early-career physicists have been awarded Ernest Rutherford Fellowship’s by the Science and Technology Facilities Council (STFC), supporting research, from the search for dark matter to the physics of black holes.
Space

25 Aug 2026

Austrian ENPULSION moves to acquire UK space propulsion specialist Lift Me Off
Enpulsion space propulsion manufacturer buys UK company lift me off
Austrian ENPULSION moves to acquire UK space propulsion specialist Lift Me Off
Austrian spacecraft propulsion manufacturer ENPULSION has agreed to acquire British specialist Lift Me Off, bringing together electric and chemical propulsion capabilities in a deal that will require UK Government approval.
Member News Space

21 Aug 2026

Manchester Airports Group reports cyber security incident
Manchester Airport
Manchester Airports Group reports cyber security incident
Manchester Airports Group has reported a cyber security incident involving customer data, amid growing concern over cyber attacks in the UK.
Aerospace Security

27 Aug 2026

Why the role of dogs in security is misunderstood
Sniffer dog
Why the role of dogs in security is misunderstood
The role of dogs and their use within today's security sector is often not fully appreciated, including their extraordinarily unique capabilities - which even the most sophisticated new technologies cannot match - and their incredibly selfless bravery.
Member News Security

27 Aug 2026

Cellebrite reveals ruggedised C-TEK forensics field kit
Soldiers on patrol
Cellebrite reveals ruggedised C-TEK forensics field kit
With its portable forensics field kit, Cellebrite has brought together rugged hardware and software to allow mission-critical data and intelligence to be captured and actioned in the field, enabling forward-deployed teams to quickly triage data from phones, SIM cards, drones and portable media to advance their mission advantage.