Up to 2,000 engineering apprenticeships could be created in Scotland as a result of the construction of a £3 billion aircraft carrier.
BAE Systems engineers and Royal Navy personnel are set to put the most advanced warship in the world through a series of tests before it enters active service.
A small firm employing 80 engineers has won funds from the Ministry of Defence, in what is being called a welcome change in procurement policy.
The MoD traditionally looks to big defence companies to source technology, though it has recently decided to give innovative SMEs a chance as well.
Plextek, which has a total of 100 staff at the moment, won the MoD's Competition of Ideas and was awarded £300,000 to research military communication.
Lord Drayson, the minister for defence equipment and support said: "The Competition of Ideas aims to encourage innovation in defence technology and to help SMEs engage with the MoD."
Plextek is now set to conduct research into how military vehicles can better communicate with each other.
General Dynaics UK is already considering the issue of how vehicles in a convoy relay information about location, status and cargo data to each other, but its solutions are thought to be too expensive to fit in every vehicle.
The MoD is counting on the small firm to find a cheaper way to produce the "low cost, low power technology with little chance of intercept", according to Lord Drayson.
Spain has agreed to join France and Germany in their involvement in the EADS-led advanced unmanned air vehicle (AUAV).Search our engineering news archive below.