The dual-use of products and technologies has recently gained strong prominence in innovation discourse, industrial policy, and financing. Geopolitical uncertainty, the slowdown of globalization, the strategic importance of technology, and issues related to security of supply have increased investor and development-organization interest in defense- and security-related solutions. According to estimates, a significant share of venture capital investments is now directed toward technologies that also have a potential security or defense linkage, even though the proportion of companies focused purely on defense remains small.
This development is understandable. Dual-use offers an attractive framework: the same technology, multiple applications. From a business perspective, however, it is important to pause and assess what dual-use means in practice, particularly for SMEs and start-ups whose resources, risk tolerance, and operating models are more limited than those of large corporations.
Dual-use is much more than products
Dual-use is often defined in terms of products, software, and technologies that can be used for both civilian and military purposes. In practice, however, the concept is broader: it may also involve, for example, data, algorithms, services, technical know-how, or even operational processes.
Dual-use is often based on the same technological core, but rarely on the idea that exactly the same product, as such, functions in both civilian and security markets. The differences arise, among other things, from requirements, responsibilities, and operating environments. A solution developed for the civilian market often does not meet the requirements of regulatory or security use without significant modifications.
For this reason, dual-use is not merely a product issue.
For this reason, dual-use is not merely a product issue. What is decisive is how a company manages product development, documentation, data handling, risk assessment, and use restrictions across different operating environments. Responsibility and ethical considerations are integrated at an early stage: design choices, limitations on use, and security-related decisions are often made while the technology is still evolving. And even if a technology itself is suitable for dual-use, not all companies are organizationally, culturally, or in terms of resources prepared to operate in such an environment.
The security market is an institutional operating environment
In the security and public authority market, sales are not merely transactional but part of an institutional procurement process. Customer relationships are established through lengthy evaluation periods, procurement procedures, and competitive tendering, in which supplier reliability, continuity, and risk management often carry more weight than the individual features of a product.
Suppliers are expected to demonstrate the ability to commit to customers over the long term: documented development work, predictable operations, security of supply, and readiness to operate as part of the customer’s own operational system. Concluding a sale does not mark the end of the customer relationship, but rather a transition to lifecycle responsibility, where the supplier is responsible for maintenance, change management, updates, and often also for ensuring user competence.
This fundamentally distinguishes the security market from conventional B2B or B2C business and imposes requirements on companies that extend from technology development to sales, contracting, and post-delivery responsibilities.
Risks and responsibilities are amplified
The risks associated with dual-use are real and often underestimated. Misuse of technology, unauthorized exports, and inadequate understanding of end users can lead to legal consequences, the withdrawal of funding, and significant reputational damage. For SMEs and start-ups, even a single serious mistake can be fatal.
For this reason, dual-use does not tolerate a “we’ll fix it later” mindset.
For this reason, dual-use does not tolerate a “we’ll fix it later” mindset. Risks, responsibilities, and boundary conditions must be identified at an early stage, before the technology or business model is taken further.
Ethics and responsibility are not side issues
Dual-use inevitably raises ethical questions. The same technology can generate significant societal benefits while simultaneously enabling serious misuse. Responsible innovation requires companies to recognize these tensions and address them from the very first stages of development.
For start-ups in particular, this means that responsibility cannot be treated as an add-on to be addressed later. Values, operating models, and corporate culture shape what kinds of solutions are developed, which markets are targeted, and what risks a company is willing to take. Limited resources do not remove responsibility; rather, they underscore the need to make deliberate and well-defined choices.
Maturity before market
Dual-use is not a shortcut to growth, nor an easy extension of civilian business. It is a demanding and binding operating environment that requires maturity in business models, processes, and corporate culture. Not all companies are, at their current stage of development, in a position where entering the dual-use market is realistic or appropriate.
This does not mean that dual-use cannot represent a long-term opportunity. A well-built business foundation, clear responsibilities, controlled product development, effective processes, and a responsible corporate culture create capabilities from the outset that are also essential in a dual-use environment. For many companies, the most important step is not immediate market entry, but developing their operations so that such a pathway is possible in the future.
From this perspective, dual-use is less a binary decision to participate or abstain, and more a framework through which a company can assess its own maturity, development needs, and long-term direction.
In conclusion
Dual-use is not a shortcut to growth nor a simple solution for business development. It is a demanding operating environment that brings new responsibilities, risks, and obligations, but also opportunities for companies that are ready to grow into them. Often, the greatest value does not arise from the market itself, but from the business development work that dual-use thinking compels companies to undertake even before entering the market.
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