A surge in dual-use innovation, autonomous systems, and privacy tech is transforming critical infrastructure and global security resilience.
At a glance – The past 24 hours have underscored a pivotal shift in the global security landscape, as dual-use technologies and security innovations take center stage in shaping international stability. European leaders and industry experts at InnoHive 2025 emphasized that dual-use innovation—technologies with both civilian and defense applications—has become essential for sovereignty, resilience, and economic competitiveness. The urgency of current geopolitical tensions, cyber threats, and the fragmentation of supply chains is accelerating the integration of defense-driven innovation into civilian sectors. This approach is now seen as vital not only for military preparedness but also for catalyzing advances in mobility, energy, and healthcare, with the battlefield serving as a proving ground for startups and new technologies.
Technology advance – Autonomous systems and AI-driven platforms are at the forefront of recent technological breakthroughs, with significant implications for both disaster prevention and critical infrastructure protection. Startups and established firms alike are deploying AI-powered drones and robotics for real-time monitoring of wildfires, floods, and other natural disasters, enabling faster response and mitigation. These systems are also being adapted for infrastructure surveillance, using advanced sensors and machine learning to detect vulnerabilities in power grids, water systems, and transportation networks. The rapid evolution of these technologies is blurring the line between defense and civilian applications, as mission-driven innovation responds to urgent, society-wide challenges.
Partnerships – Strategic alliances are multiplying across the defense and technology sectors, with new joint ventures and public-private partnerships driving the development and deployment of dual-use systems. Notably, NATO’s €1 billion Innovation Fund and the Defence Innovation Accelerator for the North Atlantic (DIANA) are fostering collaboration between startups, research institutions, and government agencies. These initiatives are targeting priority areas such as energy resilience, secure communications, and autonomous logistics, aiming to accelerate the commercialization of technologies that enhance both national security and civilian resilience. The collaborative model is proving especially effective in shortening development cycles and bringing critical innovations to market more rapidly than traditional procurement processes allow.
Acquisitions/expansions – The investment landscape for dual-use technologies is experiencing robust growth, highlighted by the launch of a new defense-focused venture fund by former leaders of the UK’s National Security Strategic Investment Fund and Molten Ventures. This fund is dedicated to Series A and B companies developing technologies with significant commercial and strategic potential, reflecting a broader trend of increasing investor interest in dual-use innovation. Recent data shows that dual-use funding reached nearly $1.2 trillion last year, with global venture capital investments in defense-related companies rising by 33 percent year-over-year. These investments are fueling the expansion of companies specializing in AI, quantum computing, advanced manufacturing, and space systems, positioning them at the forefront of both commercial and security markets.
Regulatory/policy – Policymakers are responding to the rapid pace of technological change with new frameworks aimed at balancing innovation, security, and privacy rights. European institutions, once cautious about defense-linked research, are now rethinking longstanding policies to encourage dual-use development. This shift is driven by the recognition that technologies such as encryption, data protection tools, and privacy-enhancing technologies are critical for safeguarding both individual rights and national security. Regulatory bodies are also focusing on the ethical deployment of autonomous systems and the protection of critical infrastructure, seeking to ensure that innovation does not outpace the ability to manage associated risks. The evolving policy landscape is fostering a more integrated approach to security and innovation across sectors.
Finance/business – The financial sector is playing a pivotal role in supporting the growth of dual-use and security-focused technologies. Venture capital and private equity firms are increasingly viewing dual-use innovation as a strategic investment, with the potential for both high returns and significant societal impact. The influx of capital is enabling startups to scale rapidly and pursue commercialization in both defense and civilian markets. Industry analysts note that the distinction between single-use and dual-use technologies is becoming less relevant, as most deep-tech innovations now serve multiple markets. This trend is expected to continue, with dual-use strategies seen as essential for building resilience and agility in the face of emerging global threats.
Sources: eitmanufacturing, therecursive, heartspace.ai, NATO Innovation Fund, Sifted, StepStone Group
