DUAL-USE READINESS MODEL

Defining “Dual-Use”

 

A QUICK HISTORY

The term “dual-use” originally referred to a specific set of nuclear materials after WWII that could be used for both military (weapons) and civilian (energy) purposes. Today, the term is applied more broadly to include companies whose products could address government needs. The Export Administration Regulations (EAR) defines dual-use items as those with both civilian applications and potential use in terrorism, military, or weapons of mass destruction (WMD).

In investment contexts, like the European Investment Fund, dual-use investments are now accepted as long as they exclude weapons and ammunition. However, distinguishing between technologies for civilian and military use is becoming more challenging, as the line between offensive and defensive solutions blurs. For some investors, deciding where to draw the line between supporting technologies for war or peace remains a complex and debated issue.

TRANSCENDING THE DEFINITION OF “DUAL-USE”

At MIx, we argue that dual-use has come to define a category of tech startup ventures selling to government and to other, so-called commercial, customers. And yet this is confusing to founders, investors, and markets (military and civilian) as it lacks a clear, useful definition. Instead, for venture founders, their teams and their investors, dual-use must be considered as a strategy rather than a category.

This matters because strategies are plans and priorities. They are about making choices and tradeoffs, what solution to build and for whom, how to test it and how to fund it. Having a dual-use strategy is about moving back and forth between the commercial and military worlds: building products for commercial customers and perhaps also delivering capabilities to government end users.

“It is less about the initial technology and more about the emerging definition of where the product fits.”

A DUAL USE STRATEGY:

includes plans, priorities, choices, and trade-offs, guiding decisions on what to build, for whom, how to test it, and how to fund it.

requires moving between commercial and military markets, building products for both customer bases.

supports navigating military procurement regulations and working with commercial contract teams.

is less about the initial technology and more about defining where the product fits in different markets.

is focused on establishing the company’s focus, identity, and brand presence.

can simultaneously support defense needs and leverage commercial opportunities.