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Military R&D and Civilian Spillovers

Open vs. Closed Systems from the Cold War to the Present

25 pages · PDF · 12 September 2025 · Licensed single-user copy, watermarked to the buyer

Strategic

Cover of Military R&D and Civilian Spillovers

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About this report

Military research and development (R&D) has historically been a powerful engine for civilian innovation , but the scale of spillovers has varied dramatically between “open” and “closed” systems. During the Cold War, open systems such as the United States and its NATO allies produced breakthrough technologies – from the internet and GPS to semiconductors and jet engines – that transformed the civilian economy .

In contrast, closed systems like the Soviet Union achieved formidable military capabilities but failed to translate defense investments into broad civilian benefits , due to factors like secrecy, rigid state control, and weak linkages to the consumer economy .

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Who it's for

Strategy, corporate-development and investment teams that need an ecosystem-level view — budgets, industrial capacity and technology landscapes — before committing capital or capacity.

Methodology & sources

DFM reports are built from primary and official sources — TED procurement notices, CORDIS and the EU Funding & Tenders Portal, EIB operations, the NATO Innovation Fund portfolio, SIPRI data, official budget documents and company disclosures — read together with the underlying legal texts. Sources are cited in the document; the report reflects them as of its publication date (12 September 2025).

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