The Rise of Dual-Use Ventures: Redefining Military Innovation in the Age of Disruption

Military innovation no longer begins in government laboratories. It often starts in small, fast-moving companies building technologies for civilian use. These companies, known as dual-use ventures, create tools that may serve both markets and militaries. Their rise marks a major shift, blending private capital, commercial design, and national security in an unstable global environment.

Defining Dual-Use Ventures

Dual-use ventures are startups that build technologies with both civilian and military applications. Many of these tools begin by solving problems in logistics, energy, communication, or healthcare. Over time, the same technologies may be useful for defense because of their efficiency, accuracy, or adaptability. Common examples include:

• Artificial intelligence
• Autonomous drones and vehicles
• Quantum computers
• Satellite and space systems
• Advanced robotics
• Biotechnology and materials science

The name “dual-use” reflects the ability of one product or system to operate across both public and defense domains.

From Top-Down to Bottom-Up Innovation

Historically, defense technology was created through large government-led projects. These processes were often slow, expensive, and limited to military use. In today’s landscape, innovation often flows from civilian startups. Commercial inventions developed for health or industry may later be adapted for national defense. This bottom-up shift favors flexibility and speed over bureaucracy.

How Dual-Use Ventures Work

These ventures usually begin in the private sector, funded by investors to solve real-world problems. If successful, they may attract interest from defense agencies. At that stage, they may apply for research grants, run pilot programs, or enter special government partnerships. Their success depends on balancing:

• Business speed with security protocols
• Profit models with public mission goals
• Commercial freedom with military restrictions

Most are founded by engineers, scientists, former military members, or technical experts with strong civic values.

The Role of Strategic Investment

Private investors now play a key role in national security. Some specialize in technologies that align with defense needs. These investors often have links to military, government, or intelligence communities. Their support includes:

• Early-stage funding
• Business guidance
• Legal and ethical advice
• Introductions to government programs

Examples include Shield Capital, Lux Capital, In-Q-Tel (a nonprofit investor supporting U.S. intelligence), and American Dynamism funds. They focus on technologies with long-term impact, not just profit.

Government Programs Supporting Startups

Traditional defense acquisition is often too slow for startups. To improve this, agencies have created new entry points. These include:

• Defense Innovation Unit (DIU): connects commercial startups with military needs
• AFWERX and NavalX: innovation offices for the Air Force and Navy
• National Security Innovation Network (NSIN): helps new companies test and scale ideas
• National Security Innovation Capital (NSIC): provides financial support for hardware startups

These programs often offer non-dilutive grants, which means the government gives funding without taking ownership of the company.

Accelerators and Public-Private Bridges

Some startups need help entering the defense world. Civil-military accelerators are programs that train founders to work with government and national security. Examples include:

• FedTech
• NSIN Foundry
• H4XLabs

These programs help startups understand military problems, prepare for government sales, and build systems that follow export and safety rules.

Operational and Ethical Challenges

Despite their promise, dual-use ventures face several difficulties:

• Startups move fast, but government buying processes are slow
• Military contracts may take years to complete
• Rules about export controls (laws that limit what may be sold to other countries) are complex
• Some technologies raise ethical concerns, like autonomous weapons or surveillance tools
• Founders may feel conflicted about how their work is used

This period of risk is often called the “valley of death”, where good technologies fail to scale due to funding gaps or bureaucracy.

Strategic Competition with Authoritarian Models

In countries like China, the government controls both civilian and military innovation through a system called civil-military fusion. This central model allows quick coordination but reduces openness. In contrast, the United States uses a decentralized model where private companies lead, and government supports.

This difference affects:

• Innovation speed and resilience
• National control over key technologies
• How quickly ideas move from lab to field
• How openly companies may grow across borders

As global tension increases, the U.S. has strengthened foreign investment reviews and export policies to protect sensitive technologies.

Fragmentation and Coordination Gaps

Even with new programs, the U.S. innovation ecosystem remains scattered. Challenges include:

• Different departments funding the same ideas
• No unified national innovation strategy
• Startup timelines not aligned with military budgets
• Lack of clear paths from prototype to widespread adoption

Improving coordination across agencies may be key to long-term success.

The Founder Identity and New Subculture

Dual-use founders often blend business goals with civic values. They are not traditional contractors and often avoid heavy bureaucracy. Their worldview includes:

• National service without political partisanship
• Openness to global markets and ethical concerns
• Reluctance to contribute to unchecked surveillance or warfare
• Desire for scalable, responsible impact

This group represents a new generation of strategic technologists working at the edge of power, technology, and public duty.

Governance Improvements for the Future

To unlock the full value of dual-use ventures, some adjustments may help:

• Expand non-dilutive early funding for startups
• Create simple, well-defined paths from pilot to adoption
• Align investor incentives with long-term public goals
• Reduce duplication across departments
• Add fast, lightweight ethical guidance tools for emerging tech

These steps may allow innovation to grow without losing alignment with national priorities.

Conclusion

Dual-use ventures are reshaping how nations build military strength. By merging fast, market-driven invention with public mission, they may offer a powerful edge in global competition. Building strong systems for coordination, accountability, and ethical use may define how this model shapes security, innovation, and strategy in the years ahead.