We often discuss startups partnering with government institutions — and when the government is the client, we often focus on the challenges that come with it.
But in the UK, startups are actually spun out of government, transforming public-sector laboratory innovation into valuable solutions for industry and society.
Ploughshare is a UK-based organisation founded in 2005 and fully owned by the Ministry of Defence (MOD). Its mission is to commercialise government-owned innovations, mainly IP developed by the Defence Science and Technology Laboratory (Dstl) and other public science bodies, to deliver real-world benefits
I spoke to CEO Hetti Barkworth-Nanton to learn all about it.
What do Ministry of Defence scientists do?
Barkworth-Nanton admits that most people have no idea what MOD scientists actually do.
“It’s a really wide spectrum, which is why I need a very broad talent base in my team.
There are some really unusual innovations you wouldn’t expect from a defence lab. One we’re working on right now, with Birmingham University, is a handheld device that can detect traumatic brain injury — something that could be used on rugby pitches or in schools nationwide.”
Ploughshare operates across multiple verticals, translating government-owned innovations into real-world impact.
These include:
- Defence and security, where military-grade technologies are adapted for broader use;
- Health and medtech, with life-saving diagnostics and clinical tools;
- Industrial and environmental tech, applying rugged solutions to sectors like energy and infrastructure; consumer safety, repurposing defence innovations for everyday protection;
- Advanced materials, such as hydrophobic coatings, are now used in footwear and electronics.
How unique IP gets stranded in government labs
Why is technology developed in the lab not actively deployed within government initiatives?
According to Barkworth-Nanton, often, the labs aren’t developing technology to take it to market; they’re proving a concept.
“Once that’s done, they often put it out to industry:
“Here’s a proven concept: who has a solution for this problem?”
Without traction, that can leave some really unique IP just sitting in the lab. “
How Ploughshare unlocks hidden value in IP backlogs
Ploughshare begins by identifying the most promising inventions, working proactively with clients to uncover ideas with strong commercial viability and the potential to drive meaningful impact. This early-stage focus ensures that innovations are not only technically robust but also positioned for real-world application.
Once identified, these ideas are rapidly developed into tangible products and solutions. Ploughshare collaborates with industry partners to determine the most effective routes to market, secures investment, and supports early-stage ventures through the Ploughshare Accelerator Fund.
To enable long-term success, it also works across a wide network of stakeholders, providing access to leadership, infrastructure, talent, and capital, helping innovation scale and reach its full potential.
With Ploughshare, innovation is grounded in existing assets, not just reinventing the wheel, and there’s a huge opportunity in re-examining past research.
Barkworth-Nanton contends:
“I’ve seen examples where AI is helping revisit failed trials, uncovering why they failed, and then redoing them successfully. That’s where consolidation and convergence come into play.”
These companies often have MOD investment, but the IP might be more useful outside of defence. Ploughshare is open to considering all IP generated in the MOD, besides that which is classified. Plougshare has authored a playbook which demystifies the ‘spinning-out’ process, taking researchers from the disclosure and securement of IP, setting up a company and growth, through to market valuation.
Its team of commercialisation managers considers key criteria:
- What’s the potential impact if this IP got out into the wider market? “That includes financial impact, economic benefit, environmental benefit, and even life-saving potential. We give it what we call an “impact score.”
- How easy it would be to get the tech out?
According to Barkworth-Nanton, this can depend on the technology readiness level (TRL);
“Low TRL needs a lot of investment before it’s viable, which can make us question if it’s worth the effort.
Another factor is whether it needs to be spun out. We either license to an existing company or we create our own spinout. If it’s a spinout, we need to be sure the originating scientists are at least motivated to support it in some form.”
Ploughshare has helped commercialise over 140 technologies, created 500+ jobs, generated £126 million in gross value added, and secured £163 million in export sales.
It has created 17 spin-outs and companies that licensed their tech commercially, with a wide-ranging impact, including defence advantage, security, health, and operational efficiencies.
How Ploughshare spins out MOD innovation
Ploughshare gets exclusive access to MOD IP. The MOD pays it a fee that partially funds our operations. It also generates income from licensing deals or equity in spinouts. All of that flows back into Ploughshare.
Since it’s 100 per cent owned by the MOD, any major exit would lead to discussions about that money going back to them.
Barkworth-Nanton explained that “when we work with non-MOD clients, they pay us a full service fee. We don’t make a profit on that, but we do agree to a small percentage of any future returns. That gives our team skin in the game.
But fundamentally, I’m not in this to just make money. I want to grow the economy, save lives, and deliver real impact.”
The difference between Government and university scientists
One of Ploughshare’s biggest challenges is attracting interest from government scientists to commercialise their work. Barkworth-Nanton views this as the biggest difference between government innovation and universities.
“Scientists in government labs usually work there because they’re passionate about their subject and want to serve the public. That doesn’t always translate into entrepreneurial motivation.
Going from public service to entrepreneurship is a massive leap in risk— on many levels.
But the ones we work with are phenomenal. We just wish more of them would engage with us. We’re actively working to make more scientists aware of what we do.”
Ploughshare has significantly expanded its capabilities over the past five years by growing the organisation by around threefold to tackle a backlog of IP that it previously didn’t have the capacity to manage effectively.
This growth has also enabled it to build a more diverse and inclusive team, which Barkworth-Nanton believes is fundamental to driving innovation. The team is also in contact with other government bodies and even defence companies.
Some Ploughshare spinouts and licensees
Claresys
Claresys was established to commercialize the COSE pinhole camera, a compact, low-light camera initially used in covert military operations.
With rugged, lens-free optics, the system has proven invaluable in harsh industrial and security environments.
Today, Claresys cameras support applications in oil and gas pipeline monitoring, hazardous material inspections, and law enforcement surveillance. The company was successfully exited.
Clearwater Hydroacoustics
Born from naval sonar research, Clearwater Hydroacoustics has developed Sonarbell, a unique “passive sonar reflector”—essentially a subsea version of a bicycle cat’s-eye.
Unlike powered beacons, Sonarbell devices don’t require batteries or maintenance, making them ideal for long-term use in underwater infrastructure monitoring. Today, they are deployed in oil and gas fields, cable-laying operations, and underwater navigation systems, significantly reducing operational costs and complexity.
Porton Plasma Innovations (P2I)
P2I develops hydrophobic coatings originally designed for military gear to protect against chemical threats.
It is now used by Hi‑Tec to waterproof footwear and by eyewear and electronics companies to safeguard against misting and moisture.
Presymptom Health
Presymptom Health commercialises a diagnostic test that can detect sepsis up to three days before symptoms appear.
It uses biomarker signatures and machine learning to provide early alerts that could save lives and reduce hospital costs.
Smart Dog-Restraint System
Inadequate, poorly fitted, or faulty car harnesses and restraints for dogs are far too common, putting the lives of both pets and owners at risk. During emergency stops or accidents, the force of a dog suddenly accelerating forward can break the animal free from conventional harnesses or restraints that rely on a seatbelt – risking death or serious injury for the dog.
The restraint system was developed to keep working and companion dogs safely restrained in vehicles during crashes, utilising energy-absorbing tech.
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