Recommendation 68

We heard that geographically targeted measures could be an effective way of involving SMEs in defence supply chains, such as fostering the growth of industry clusters. Hans Pung of RAND Europe, when asked what the UK Government could do to promote SME involvement, suggested that “the MOD working-with-industry group should really take a hard look at the benefit of industry clusters,” noting that strong maritime clusters in Scotland already exist. The MOD itself recognises the strengths of shipbuilding clusters around the Clyde in the National Shipbuilding Strategy Refresh, and the UK Government’s Maritime 2050 strategy gives a firm commitment to supporting regional maritime clusters, including in Scotland.111 Kevin Craven, Chief Executive Officer of ADS Group, noted that the MOD has already done some work to involve SMEs in defence supply chains through the regional cluster programme.112