Dual-use and defense technologies are at an inflection point. The return of great power competition has demonstrated the geopolitical importance of technological dominance. From semiconductors to AI, maintaining advantages in critical technologies is key to both national security and economic prosperity. As such, commercial and government investment incentives are increasingly aligned, presenting a growth opportunity for entrepreneurs and investors alike.

Haven’t we heard this hype before? A decade ago, the Obama Administration spearheaded many initiatives to bring Silicon Valley technology to government. But divides remained -- symbolized by Google’s 2018 Project Maven revolt.[i] For builders and investors in sectors where commercial interests and the public purpose interact, it is easy to conflate what one wants to succeed with what is profitable and technically feasible.

Yet there are reasons to believe the dual-use and defense technology sectors are on sure footing. Driven by the confluence of geopolitical, technological, and market forces, a transformation is occurring that describes a secular growth story – one that is resilient to the current market fluctuations.