The British Government is driven by the concept of value for money and is seeking ways in which to fund projects in the public sector. In the defence sector, this is resulting in the formation of public‐private partnerships and a close working relationship between the Government and defence companies. As well as placing the UK’s defence capability within the context of national security, it also needs to be placed within the context of the Government’s foreign policy which is focused on international conflict prevention. The UK Government remains committed to encouraging international collaboration as this should witness technology transfer from the defence sector to the civil sector. Makes reference to nine factors which underlie collaboration in the defence sector and draws on the expertise of defence sector experts who provide insights into the defence industry. Refers to a postal survey which was undertaken in 1999 in order to establish which areas of defence management would receive increased attention in both the short term and the long term. Finally, highlights the Executive Intelligence Alliance Policy and Strategy (EIAPS) Charter which can be used by defence company personnel as a framework to develop long‐term working relationships with other defence companies, government departments and universities.