The massive investment in research and development is effectively expropriated, yielding no return. The technology is often repackaged and sold to domestic competitors, eroding the original investor's competitive edge.
Dual Use Tech Transfer Security Risks Explained
While the short-term volume might increase, the long-term consequence is a hollowed-out industrial base that relies on handouts rather than breakthroughs. Alternatively, domestic firms seeking to partner with foreign giants face an ultimatum: share your innovations to secure the joint venture, or walk away from the lucrative market.
A state may acquire the blueprint for a critical infrastructure component, such as a grid management system or communication hardware, with the latent ability to introduce backdoors or sabotage. Economically, this stifles genuine competition and distorts the market, favoring incumbents who have mastered the extraction game over nimble startups with authentic innovation.
Dual Use Tech Transfer Security Risks and Coercion Tactics
A foreign entity, eager to navigate local regulations or reduce tariffs, agrees to a 50/50 partnership. Unlike standard licensing, which is voluntary and remunerated, this method operates under duress, extracting intellectual property that a partner would otherwise protect.
More About Forced tech transfer
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More perspective on Forced tech transfer can make the topic easier to follow by connecting earlier points with a few simple takeaways.
