Will dual-use technologies bring a breakthrough in the economy?

• The global political situation is influencing the industry's position on security. More and more entrepreneurs are interested in dual-use technologies that can be used for civilian and defense purposes.
• Many civilian innovations created by Łukasiewicz - Institute of Non-Ferrous Metals in Poznań have found application in the army. Examples include: magnetic cores, reactive powders, and mobile robots.
• However, experts warn that the interpenetration of civilian and defense technologies can pose a major threat to our security if misused. This is why, among other things, the export of such innovations outside the European Union is regulated by restrictive regulations.

Poland will spend 4.7% of GDP on defense this year. Arms spending is a public good - as experts from the Institute of Public Finance note - it may seemingly have little impact on economic growth, but this increase in the level of security is important for investments.

More and more entrepreneurs are realizing this and are looking for technologies on the market that can have both civilian and military applications.

Industry increasingly requires scientists to develop certain solutions with the widest possible applications. Military applications are currently number one in the world. Just look at the budgets of many countries that are focused on developing military applications, but more and more companies are also thinking about expanding their portfolio with this type of product – said Barbara Juszczyk, Polish engineer and director at Łukaszewicz - Institute of Non-Ferrous Metals, during the 17th European Economic Congress in Katowice.

Civilian innovations are also elements of weapons

The scientist mentioned magnetic cores developed by her institute as an example of such technology. - They can be used both in transformers to amplify the magnetic field, but also in control systems and electronic systems in precision-guided ammunition - Juszczyk informed.

Łukasiewicz - Institute of Non-Ferrous Metals created, among others, BTR-03 thermal batteries, which power, among others, one of the hits of our armaments industry - PPZR Piorun, which is produced by the MESKO plants belonging to the Polish Armaments Group.

These batteries are used in the control systems of intelligent missile ammunition (including Gromy, Błyskawice, Narew and Pirat). They can also be a source of power for robots, specialized machines, air targets or space systems and modules.

- Also the materials that my institute deals with, such as reactive powders, e.g. light metal powders, are a component of explosive systems based on thermobaric systems. Another example of such dual-use materials is, for example, ammonium nitrate, a component that is commonly used in artificial fertilizers. It can also be a component of explosives - reminded Director Juszczyk.

A new fund to finance dual-use innovations has been launched

As our interviewee pointed out, another example of dual-use devices are mobile robots, such as those used by our Border Guard to protect critical infrastructure, clear land of mines, but also in agriculture for sowing or spraying crops. These robots also help in assessing certain parameters in mining.

There are many more examples of dual-use innovations in the country. It is worth mentioning here the Liftero satellite engine, Aether Biomedical's bionic prostheses or Fresh Inset's technologies that allow for extending the freshness of fruit and vegetables.

Projects such as those mentioned above gained a new source of financing in early May. PFR Ventures, together with the Ministry of Finance, launched a new deep tech fund with a contribution of PLN 300 million .

Through several venture capital funds, hundreds of millions of zlotys (the program assumes that private investors will add at least twice as much) will reach the most innovative companies in the country within a few months.

The new financial vehicle is to invest mainly in cybersecurity, space technologies and artificial intelligence, but also in dual-use technologies.

Dual-use innovations are not only about economic development, but also about risk. Their misuse can lead to serious security breaches, cyberattacks, espionage, and violations of privacy and human rights .

For this reason, the export of these technologies outside the European Union is strictly regulated by restrictive regulations.

Although, as Deloitte experts point out, there are also loopholes in these regulations. For example, the EU AI Directive regulates high-risk civilian AI but excludes military applications, which creates a regulatory loophole that makes dual-use technologies susceptible to misuse.

"AI systems developed by civilians, such as drones and surveillance tools, can be reused for military or intelligence purposes," reads Deloitte's report, "Dual-use technology: international cooperation in the cybersecurity sector."