Cutting defence investment will result in UK armed forces missing out on a wave of battle winning products, according to aerospace, defence and security manufacturers.
The warning came from sector trade association-ADS- in its response to a green paper on equipment, support and technology for UK defence and security.
An official ADS response commented: "The UK should retain core capabilities in key areas of science and technology, civil and military, and should be prepared to invest to develop new technologies to meet future threats."
The government must be "realistic" about how much defence technology could be imported from other nations, ADS stressed.
"State of the art technology may increasingly be generated in countries which will not want to share it with the UK, or not on acceptable terms," the ADS response said.
By backing the UK defence sector, ministers could deliver growth in domestic advanced manufacturing and protect the public purse, ADS added.
Rees Ward, ADS, chief executive said: "The green paper offers an excellent opportunity to suggest ideas to the government about reforms and improvements to deliver additional benefits for our troops and security authorities."
Ward added: "This will also benefit the taxpayer through providing increased value for money and enhanced public protection. We welcome the open attitude in which this consultation has been carried out and we look forward to further discussions with the Government on how industry can help in the future.