Military R&D and Civilian Spillovers

This short analytical note frames Military R&D and Civilian Spillovers as a question of European strategic autonomy, where a capability becomes strategically and financially relevant through alignment with recognised priorities, not the technology alone. 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 [1] [2]. 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 [3]. Key institutional conditions emerged as decisive: vigorous universities, dynamic private firms, venture capital, and flexible procurement proved critical in enabling dual-use innovation in open societies. Why this capability becomes strategically and financially relevant is developed in full in the original DFM publication on DFM Analysis.