US should help its allies develop dual-use technologies

Did you know that, if it were not for the US Department of Defense, many of the technologies that empower our daily lives would not be available? Moreover, many of these technologies have allowed for peaceful living in the Western Hemisphere since the end of the Second World War. Indeed, it was the government’s patient capital, as well as military contracts, that supported the development of all the tech that came out of Silicon Valley. Many of these links have been forgotten. Yet, with today’s global geopolitical crises, wars and greater competition, we are once again noticing a new development of dual-use technologies. It is something the rest of the world, particularly Europe and the Gulf countries, should look into emulating.

The term dual-use refers to technologies that have both civilian and military applications. And few remember that the origins of dual-use technologies can be traced back to the US DOD and its investment in research and development. Moreover, the DOD’s investment in technology played a major role in the development of Silicon Valley and the technology industry as a whole.

Technologies such as the internet and the Global Positioning System were developed through DOD funding and we are all aware how important they are today, not only on the military side but also for civilians. Today, GPS and the internet represent trillions of dollars in commercial applications and hundreds of thousands of jobs. Think of all the apps we use in our everyday lives.

A clear example of the DOD’s investment in Silicon Valley was the development of the internet. The DOD’s Defense Advanced Research Projects Agency initially created the Advanced Research Projects Agency Network, known as ARPANET, the precursor to the modern internet, in the 1960s. The goal of the ARPANET was to create a communication network that could withstand a nuclear attack, but it ended up having a much broader impact, laying the foundations for the internet as we know it today.

In a dangerous world, the development of dual-use technologies is becoming increasingly important

Khaled Abou Zahr

Another key example of the DOD’s investment is the development of semiconductors. The DOD’s investment in semiconductor research and development in the 1960s and 1970s helped to establish Silicon Valley as a global leader in that industry. It gave the US the lead in many sectors. The DOD also invested in the development of GPS technology. GPS was developed by the DOD in the 1970s as a military navigation system. However, its technology was quickly found to have civilian applications and is now used in a wide range of industries, including transportation, agriculture and retail.

Aside from these examples, the DOD also invested in the development of other technologies, such as drones, cybersecurity and artificial intelligence, which all have both civilian and military applications. The DOD’s investment provided the support that companies needed to develop these technologies to the point where they could be commercialized and applications found in various sectors. And this is the key point: The need for an alliance between government patient capital and private capital in order to support and establish the sustainability of companies and their underlying technologies. Without the support and long-term vision of the DOD, this would not have been imaginable.

In recent decades, traditional venture capital investments have moved away from their original goal of funding high-risk but potentially game-changing new technologies, whether hardware or software. This is also why dual-use now represents a great area of potential growth. In a dangerous world, the development of dual-use technologies is becoming increasingly important in the drive to maintain technological capabilities and strengthen economies.

With their goal of economic diversification, Gulf countries should support companies that are developing and funds that are investing in dual-use technologies for a number of reasons. Firstly, dual-use technologies provide both commercial and military benefits, which can help to strengthen the economies of Gulf countries. Additionally, with the current geopolitical situation and ongoing conflicts in the region, it is important for the Gulf states to maintain sovereignty over their tech supply chain. Investing in dual-use technologies can help them achieve this goal by providing the technological capabilities they need to defend themselves and maintain their independence.

The space sector is very symbolic of this new paradigm. It is a key area where dual-use technologies can play a critical role. Space-based systems and technologies, such as satellites, are critical for both civilian and military applications, including navigation, communication, intelligence and surveillance. The development of dual-use technologies in the space sector can help Gulf countries to maintain their access to space, which is crucial for both civilian and military purposes.

One key point remains and it is around transatlantic tech cooperation in this field. Can the US find a way to support the development of dual-use technologies by its allies or do Europe and the Gulf need to develop them alone? There are some restrictions on the export of key components from the US to its allies. And so, the strategic question of how to move forward is becoming increasingly important amid the current global geopolitical tensions. Europe and the Gulf countries are determined to support companies developing dual-use technologies in order to strengthen their economies and maintain their sovereignty. A collaboration between the US, Europe and the GCC would be an ideal formula and could lead to a stronger transatlantic alliance and a more secure and stable global community.