The U.K.'s Ministry of Defence announced it will spend around 800 million pounds, or $1.2 billion, on its defense innovation initiative with the United States.

As part of the initiative, the ministry will create new entities such as the Emerging Technology and Innovation Analysis Cell (ETIAC) to study new security technologies. ETIAC and other new bodies will work with universities and corporations to study and develop ways to deal with threats to Britain's national security.

"As the threats we face grow, it is vital that we harness innovation," U.K. Defence Secretary Michael Fallon said in a statement. "By using our rising defence budget to create a new fund backed by 800 million pounds of new investment, we will ensure that we stay ahead of our enemies. I hope and expect Scottish companies will be heavily involved in this initiative."

Fallon met with U.S. Defense Secretary Ash Carter in October. During their meeting, the two defense chiefs agreed to collaborate further on defense innovation, including both technologies and operational concepts.

U.K.-based academic partners for the innovation initiative include Glasgow University and the University of Strathclyde. Studies conducted thus far include research on disruptive capabilities such as quantum sensing.

The Ministry of Defence says it will discuss the initiative in more detail in early 2016.