BAE Systems case study
Stone & Chalk and BAE Systems Pathfinder Series
Building Australia's sovereign defence capability through strategic partnerships
Australia imports over 70% of its defence technology – a strategic vulnerability that becomes more critical every year.
The capability exists locally to change this, but most innovative Australian companies can't navigate defence's complex procurement and compliance requirements.
BAE Systems and Stone & Chalk built a systematic solution: connect Australia's most promising defence-tech startups directly with enterprise supply chains and provide the mentorship to make those relationships work.
The challenge
Australia's defence industry includes over 3,000 companies, but the ecosystem was fragmented.
Startups with breakthrough solutions for cybersecurity, autonomous systems, and advanced materials couldn't access defence markets due to complex procurement processes and unclear entry points.
BAE Systems needed to strengthen their supply chain with innovative Australian technologies while helping build the sovereign capability the nation requires. But traditional vendor discovery was too slow and startups lacked the defence industry knowledge to position their solutions effectively.
The gap wasn't technology or talent, it was structured pathways that could connect innovation with operational defence needs while meeting stringent security and compliance standards.
The solution: The Pathfinder Series
The Pathfinder Series created a nationwide program that systematically connects emerging defence technologies with BAE's supply chain through structured collaboration.
The program provided:
- Curated workshops bringing BAE supply chain leaders together with pre-screened startups
- One-on-one mentorship helping startups understand defence requirements and compliance standards
- Real-world problem focus where each session addressed specific operational challenges BAE needed solved
- Clear commercialisation pathways from proof-of-concept through to supply chain integration
- Inclusive participation actively engaging First Nations entrepreneurs, veterans, and regional businesses
The series was designed to create lasting commercial relationships that strengthen Australia's defence industrial base.
The impact
The results prove the model works:
- 17 startups accelerated into the defence supply chain with clear integration pathways
- Technology readiness levels advanced across multiple critical defence capabilities
- Geographic expansion from South Australia to Victoria, with further regional growth planned
- Systematic approach now being replicated across other defence primes and government agencies
Companies are now scaling solutions that started as BAE operational challenges, creating Australian jobs while building sovereign capability.
The Pathfinder Series demonstrates that strategic corporate-startup collaboration can solve the dual challenge of innovation adoption and sovereign capability building.
It's proving that Australia can reduce defence technology dependence by systematically backing our homegrown innovators.
