According to the government's latest defence and security review a cross-government emerging technology and innovation cell will be created to ensure the UK is taking advantage of new technologies.
The report said: "We will improve our technology scouting for new threats and opportunities, drawing in ideas and systems pioneered in fields beyond defence and security."
As part of the £165m Defence and Cyber Innovation Fund, The National Security Strategy and strategic defence and security review 2015 also promised to dedicate 1.2% of the defence budget to science and technology during this current parliament.
Osborne also promised a £1.9bn investment in cyber security over the next five years.
According to the review the government will publish a five year national cyber security strategy next year and launch a further five year National Cyber Security Programme.
The review said: "These will ensure that we have in place all the necessary components to defend the UK from cyber attack.
"These include capabilities that allow us to understand and tackle the most advanced threats; law enforcement capabilities to deal with cyber crime; support for businesses, particularly in the UK's critical national infrastructure; and the skills and innovation needed for the long term."
The government will look at which technologies it needs to develop in-house and which it should "obtain commercially and through partnership and joint investment with allies, academia and industry".
Tech associate for defence and security at TechUK, James Murphy, said: "The government has clearly understood that to stay at the cutting edge, secure our national interests and to prepare for operations in the information age, different steps needed to be taken.
"By working closely together, sharing information and collaborating, government departments and industry will enhance the UK's ability to protect our citizens and economy."
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