The U.K. Ministry of Defence (MoD) signed a new $62.6 million contract with BAE Systems Dec. 19 as part of an effort to ensure the United Kingdom retains a leading edge in the next generation of combat air systems.

The four-year Future Combat Air System (FCAS) focused research contract aims to sustain and develop the U.K.’s critical technology and skills in this field. It will inform the MOD’s unmanned air system strategy over the coming decades to ensure that the best use is made of these new technologies, the ministry said in a statement.

Currently, the vast majority of unmanned aircraft flying conduct surveillance and reconnaissance in support of front line troops, providing them with vital intelligence, and helping to save lives in Afghanistan.

A significant amount of the research funding is expected to go to small and medium-sized enterprises across the United Kingdom, widening the supplier base and ensuring the MOD has access to the best national and international technologies, MoD said in a statement.

Minister for Defence Equipment, Support and Technology Peter Luff said: “I am committed to providing sustained support for science and technology across all aspects of Defence. As part of our ongoing investment, the Ministry of Defence has and will continue to invest in aerospace sector projects like this to ensure that we develop and maintain the UK’s formidable strengths in this specialist field.”

BAE Systems’ Taranis, a prototype unmanned combat aircraft of the future, was unveiled by MoD in 2010.

Nick Joad, who leads the Defence Science and Technology Laboratory’s Air Domain, said:”This is an important step in ensuring that the MoD continues to develop its capabilities in this area, and is able to exploit potentially game-changing technologies. We have worked very hard with BAE Systems to ensure that we have a high impact program, and look forward to seeing the fruits of this investment of both money and intellectual capital.”