Innovation and International Security in Tension: Challenges in Applying Technology Transfer Risk Management Measures in Research Organisations

Whilst the pace of technological development is accelerating in both the private and public sectors, universities and research institutes (hereafter collectively “research organisations”) nevertheless retain leadership in the development of emerging technologies. Research organisations have a culture of innovation and international knowledge sharing which has long existed in tension with government policies aiming to prevent the transfer of sensitive knowledge to hostile states and non-state actors. However, many governments now increasingly require research organisations to take action to prevent such sensitive technology transfer, due to increasing great power competition for technological dominance coupled with fears over proliferation of weapons of mass destruction (WMD). In this paper, reasons for this cultural clash and why it is now coming to the fore are explored, and the potential impacts for research organisations and innovation are discussed, using a range of illustrative case studies of past sensitive technology transfers. Using the UK higher education sector as a model, recommendations are then presented on how government and research organisations can work collaboratively to achieve a balance between international security priorities and innovation.

If research organisations are required to implement restrictions on their activities, international scientific cooperation will likely be slowed and/or reduced. Whilst it is likely that only a small fraction of research activities would be affected under such scenarios, any impacts will be felt more broadly, as research organisations would highly likely need to implement new risk assessment and compliance processes, creating additional costs. This also risks hindering the ability of organisations to compete equitably in the international marketplace of ideas, or even earn sufficient research income to support their beneficial activities. Restrictions on the types of research permitted, the ability to attract top-tier international talent, and the ability to accept funding from foreign sources must be balanced and proportionate to the risk.