March 11, 2026 • 11 mins
Artificial intelligence, semiconductors, satellites, robotics.
Most people see them as civilian technologies powering the digital economy.
But many of these innovations also have a military dimension.
They are what regulators call dual-use technologies — technologies that can serve both civilian and defence purposes.
As geopolitical tensions rise and global defence spending reaches record levels, these technologies are becoming strategic assets for governments and industry.
And this shift is triggering a rapid expansion of European regulation, from export controls to foreign investment screening, sanctions regimes and industrial policy initiatives such as the European Defence Fund and the EU Chips Act.
In this episode of Diritto al Digitale, Giulio Coraggio explores:
- what qualifies as a dual-use technology
- the EU legal frameworks governing these technologies
- why companies developing AI, chips, robotics and aerospace technologies are increasingly affected by defence regulation
- the industrial opportunities for European and Italian companies in this rapidly evolving sector
- and the growing intersection between technology, law and geopolitics
If you work in technology law, compliance, defence, AI, semiconductors or export control, this is a conversation you cannot afford to miss.
Because the future of innovation in Europe will increasingly depend on technologies that are both civilian and military at the same time.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:11):
Semiconductor developed for high performance
computing, a machine learningsystem designed to analyze
medical imaging, a navigationtechnology created to improve
the safety of autonomousvehicles.
All of these technologies havesomething in common.
They were originally designedfor civilian applications, but
(00:35):
each of them can also be usedfor military purposes.
And this is precisely whatdefines dual use technologies.
Technologies that can serve bothcivilian and military functions.
In recent years, the relevanceof the dual-use sector has grown
dramatically.
Geopolitical tensions, increaseddefense spending, and the global
(00:58):
competition for technologicalleadership are pushing
governments to pay much closerattention to how sensitive
technologies are debit, transferand export.
For companies within theEuropean Union, in particular
for the Italian industrialeconomy ecosystem, this
evolution creates bothsignificant opportunities and
(01:22):
complex revolting changes.
In this episode, we explore thereligious framework rewarding
world-use technologies anddiscuss why this topic is
becoming increasingly importantfor companies operating in
(01:44):
advanced technology technically.
(02:05):
I'm Julio Faraggio, technologyand data lawyer and partner at
the Global Office Delegate.
In each episode, we discuss thelegal and regulatory revenues
that are transforming theinnovation planet.
From artificial intelligence andcybersecurity to digital
platforms and emergingtechnologies.
(02:26):
And today we are focusing ondual use technologies and the
defense sector, a topic thatsits at the intersection of
technology regulation,geopolitics, and industrial
policy.
So, why in dual use technologiesmatter today?
(02:48):
The importance of dual usetechnology has increased
significantly over the past fewyears.
This is largely due to theevolving geopolitical context.
According to data from theStockholm International Peace
Research Institute, globalmilitary expenditure reached
approximately$2.4 trillion in2024, marking the highest level
(03:14):
ever recorded.
At the same time, governmentsare increasingly concerned about
technological sovereignty andstrategic autonomy.
Advanced technologies such assemiconductors, AI, quantum
computing, and satellite systemsare now seen as strategic assets
that can influence both economiccompetitiveness and national
(03:38):
security.
And many of these technologiesoriginate in the civilian
technology ecosystem rather thanin traditional defense
industries.
This is a major structuralchange.
Today, the opposite isfrequently true.
(04:00):
Commercial technologydevelopment is driving military
innovation.
So what are dual usetechnologies?
From a legal perspective, dualuse items are good software and
technologies that can be usedfor both civilian and military
purposes.
Examples include advancedmicroelectronics and
(04:20):
semiconductors, encryptiontechnologies, satellite
navigation systems, drones andautonomous systems, advanced
materials and lasers, artificialintelligence and high
performance computing systems.
Because of their potentialmilitary applications,
international trade of thesetechnologies is subject to
strict export control regimes.
(04:42):
The objective of these regimesis to prevent sensitive
technologies from being used forthe development of weapons or
mass destruction.
Military programs that coulddestabilize international
security, surveillancetechnologies used in violation
of human rights.
So, what is the EU regulatoryform framework for these
(05:05):
technologies?
In the European Union, the mainlegal instrument governing dual
use technologies is theRegulation 2021 A21, commonly
referred to as the EU dual useregulation.
The regulation establishes aharmonized framework for
controlling the export brokeringtechnical assistance in transit
(05:27):
of dual use items.
Under this framework, companiesexporting certain technologies
outside the European Union mustobtain export authorizations
from national competentauthorities.
The regulation also incorporatescontrol lists aligned with
international export controlregimes, such as the Western R
(05:50):
arrangement, the NuclearSuppliers Group, the Australia
Group, the Missile TechnologyControl Regime.
One of the most importantinnovations introduced by the
2021 reform concerns the cybersurveillance technologies.
The regulation now allowsauthorities to restrict exports
(06:11):
of certain digital technologiesif they may be used for internal
repression of human rightsviolations.
This reflects a broader shift inexport control policy, where
national security considerationsare increasingly intertwined
with fundamental rightsconcerned.
(06:33):
So, what is the role of nationalauthorities?
Although the EU regulationharmonizes the legal framework,
the responsibility for grantingexport authorizations remains
with national authorities.
In Italy, this role is performedby the UAMA, the unit for the
authorizations of armamentmaterials within the Ministry of
(06:58):
Foreign Affairs.
Companies operating in advancedtechnologies sectors must
therefore implement robustinternal processes to ensure
compliance with export controlrules.
These processes typicallyinclude classification of
products against dual-usecontrol lists, screening of
(07:18):
customers and counterparties,assessment of and use and end
users, monitoring of sanctionsregimes.
Export control compliance hasbecome particularly critical
following the sanctions adoptedagainst Russia after the
invasion of Ukraine, whichinclude extensive restrictions
(07:39):
on export of dual usetechnologies.
So what are the industrialopportunities for the Italian
ecosystem?
While export control regimesimpose regulatory constraints,
the growth of the dual usesector also created significant
industrial opportunities.
(08:14):
These programs aim to mobilizetens of billions of euros in
public and private investmentsin advanced technologies.
For the Italian industrialeconomist, this is particularly
relevant.
Italy has strong capabilities insectors closely linked to the
well-used technologies,including aerospace and
(08:35):
satellite technologies, roboticsand automation, precision and
engineering, microelectronics,artificial intelligence.
According to data fromConfindustria, the Italian
aerospace and defense supplychain includes more than 4,000
companies and generatesapproximately 18 billion euros
(08:56):
in annual revenues.
Moreover, the transformation ofthe automotive sector is pushing
several manufacturing companiesto explore diversification
opportunities in high technologymarkets, including dual use
technologies.
However, entering the dual-useecosystem also requires
(09:16):
companies to address a new setof regulatory challenges.
These include export controlregulations, international
sanctions regimes, technologytransfer restrictions, national
security screening of foreigninvestments, failure to comply
with export control rules canresult in significant
administrative and criminalpenalties, as well as
(09:37):
reputational damages andrestrictions on international
trade.
For this reason, many companiesare strengthening their export
control governance frameworks,integrating legal compliance and
technology management solutions.
The rise of dual-use technologyalso highlights a broader
(09:58):
transformation in globaltechnology governance.
Technology is no longer only adriver of economic growth.
It has become a central elementof geopolitical competition.
As a result, we are witnessing agravity expansion of regulatory
frameworks aimed at controllingstrategic technologies.
(10:19):
Export controls, investmentscreening mechanisms, and
technologies overnight policiesare increasingly shaping the
global innovation landscape.
And dual-use technologies sitright at the center of this
transformation.
(10:45):
Understanding the legalframework governing these
technologies is becomingessential, not only to mitigate
regular risks, but also toidentify new opportunities in
emerging strategic markets.
And this raises a few questionsworth reflecting on.
With the growing importance ofdefense-related technologies,
reshape the European innovationecosystem.
(11:08):
Are companies preferred tonavigate the increasingly
complex expo control landscape?
And how can we strike the rightbalance between technological
innovation, economiccompetitiveness, and
international security?
If you have thoughts on thistopic, feel free to reach out.
If you enjoyed this episode,remember to subscribe to the
(11:28):
podcast Dirito Digitale so youdon't miss upcoming discussions
on low technology and digitalregulation.
I'm Giulio Coraggio and this isDirito Digitale.
Semiconductor developed for high performance
computing, a machine learningsystem designed to analyze
medical imaging, a navigationtechnology created to improve
the safety of autonomousvehicles.
All of these technologies havesomething in common.
They were originally designedfor civilian applications, but
(00:35):
each of them can also be usedfor military purposes.
And this is precisely whatdefines dual use technologies.
Technologies that can serve bothcivilian and military functions.
In recent years, the relevanceof the dual-use sector has grown
dramatically.
Geopolitical tensions, increaseddefense spending, and the global
(00:58):
competition for technologicalleadership are pushing
governments to pay much closerattention to how sensitive
technologies are debit, transferand export.
For companies within theEuropean Union, in particular
for the Italian industrialeconomy ecosystem, this
evolution creates bothsignificant opportunities and
(01:22):
complex revolting changes.
In this episode, we explore thereligious framework rewarding
world-use technologies anddiscuss why this topic is
becoming increasingly importantfor companies operating in
(01:44):
advanced technology technically.
(02:05):
I'm Julio Faraggio, technologyand data lawyer and partner at
the Global Office Delegate.
In each episode, we discuss thelegal and regulatory revenues
that are transforming theinnovation planet.
From artificial intelligence andcybersecurity to digital
platforms and emergingtechnologies.
(02:26):
And today we are focusing ondual use technologies and the
defense sector, a topic thatsits at the intersection of
technology regulation,geopolitics, and industrial
policy.
So, why in dual use technologiesmatter today?
(02:48):
The importance of dual usetechnology has increased
significantly over the past fewyears.
This is largely due to theevolving geopolitical context.
According to data from theStockholm International Peace
Research Institute, globalmilitary expenditure reached
approximately$2.4 trillion in2024, marking the highest level
(03:14):
ever recorded.
At the same time, governmentsare increasingly concerned about
technological sovereignty andstrategic autonomy.
Advanced technologies such assemiconductors, AI, quantum
computing, and satellite systemsare now seen as strategic assets
that can influence both economiccompetitiveness and national
(03:38):
security.
And many of these technologiesoriginate in the civilian
technology ecosystem rather thanin traditional defense
industries.
This is a major structuralchange.
Today, the opposite isfrequently true.
(04:00):
Commercial technologydevelopment is driving military
innovation.
So what are dual usetechnologies?
From a legal perspective, dualuse items are good software and
technologies that can be usedfor both civilian and military
purposes.
Examples include advancedmicroelectronics and
(04:20):
semiconductors, encryptiontechnologies, satellite
navigation systems, drones andautonomous systems, advanced
materials and lasers, artificialintelligence and high
performance computing systems.
Because of their potentialmilitary applications,
international trade of thesetechnologies is subject to
strict export control regimes.
(04:42):
The objective of these regimesis to prevent sensitive
technologies from being used forthe development of weapons or
mass destruction.
Military programs that coulddestabilize international
security, surveillancetechnologies used in violation
of human rights.
So, what is the EU regulatoryform framework for these
(05:05):
technologies?
In the European Union, the mainlegal instrument governing dual
use technologies is theRegulation 2021 A21, commonly
referred to as the EU dual useregulation.
The regulation establishes aharmonized framework for
controlling the export brokeringtechnical assistance in transit
(05:27):
of dual use items.
Under this framework, companiesexporting certain technologies
outside the European Union mustobtain export authorizations
from national competentauthorities.
The regulation also incorporatescontrol lists aligned with
international export controlregimes, such as the Western R
(05:50):
arrangement, the NuclearSuppliers Group, the Australia
Group, the Missile TechnologyControl Regime.
One of the most importantinnovations introduced by the
2021 reform concerns the cybersurveillance technologies.
The regulation now allowsauthorities to restrict exports
(06:11):
of certain digital technologiesif they may be used for internal
repression of human rightsviolations.
This reflects a broader shift inexport control policy, where
national security considerationsare increasingly intertwined
with fundamental rightsconcerned.
(06:33):
So, what is the role of nationalauthorities?
Although the EU regulationharmonizes the legal framework,
the responsibility for grantingexport authorizations remains
with national authorities.
In Italy, this role is performedby the UAMA, the unit for the
authorizations of armamentmaterials within the Ministry of
(06:58):
Foreign Affairs.
Companies operating in advancedtechnologies sectors must
therefore implement robustinternal processes to ensure
compliance with export controlrules.
These processes typicallyinclude classification of
products against dual-usecontrol lists, screening of
(07:18):
customers and counterparties,assessment of and use and end
users, monitoring of sanctionsregimes.
Export control compliance hasbecome particularly critical
following the sanctions adoptedagainst Russia after the
invasion of Ukraine, whichinclude extensive restrictions
(07:39):
on export of dual usetechnologies.
So what are the industrialopportunities for the Italian
ecosystem?
While export control regimesimpose regulatory constraints,
the growth of the dual usesector also created significant
industrial opportunities.
(08:14):
These programs aim to mobilizetens of billions of euros in
public and private investmentsin advanced technologies.
For the Italian industrialeconomist, this is particularly
relevant.
Italy has strong capabilities insectors closely linked to the
well-used technologies,including aerospace and
(08:35):
satellite technologies, roboticsand automation, precision and
engineering, microelectronics,artificial intelligence.
According to data fromConfindustria, the Italian
aerospace and defense supplychain includes more than 4,000
companies and generatesapproximately 18 billion euros
(08:56):
in annual revenues.
Moreover, the transformation ofthe automotive sector is pushing
several manufacturing companiesto explore diversification
opportunities in high technologymarkets, including dual use
technologies.
However, entering the dual-useecosystem also requires
(09:16):
companies to address a new setof regulatory challenges.
These include export controlregulations, international
sanctions regimes, technologytransfer restrictions, national
security screening of foreigninvestments, failure to comply
with export control rules canresult in significant
administrative and criminalpenalties, as well as
(09:37):
reputational damages andrestrictions on international
trade.
For this reason, many companiesare strengthening their export
control governance frameworks,integrating legal compliance and
technology management solutions.
The rise of dual-use technologyalso highlights a broader
(09:58):
transformation in globaltechnology governance.
Technology is no longer only adriver of economic growth.
It has become a central elementof geopolitical competition.
As a result, we are witnessing agravity expansion of regulatory
frameworks aimed at controllingstrategic technologies.
(10:19):
Export controls, investmentscreening mechanisms, and
technologies overnight policiesare increasingly shaping the
global innovation landscape.
And dual-use technologies sitright at the center of this
transformation.
(10:45):
Understanding the legalframework governing these
technologies is becomingessential, not only to mitigate
regular risks, but also toidentify new opportunities in
emerging strategic markets.
And this raises a few questionsworth reflecting on.
With the growing importance ofdefense-related technologies,
reshape the European innovationecosystem.
(11:08):
Are companies preferred tonavigate the increasingly
complex expo control landscape?
And how can we strike the rightbalance between technological
innovation, economiccompetitiveness, and
international security?
If you have thoughts on thistopic, feel free to reach out.
If you enjoyed this episode,remember to subscribe to the
(11:28):
podcast Dirito Digitale so youdon't miss upcoming discussions
on low technology and digitalregulation.
I'm Giulio Coraggio and this isDirito Digitale.
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