Assessment of Australia’s Current Performance and Trajectory in Dual-Use Technologies (2025)

Executive Summary

Australia is making significant strides in the development and deployment of dual-use technologies, particularly in the domains of 3d-printing-for-manufacturing, advanced-manufacturing-techniques, blockchain, blockchain-technology, composite-materials, digital-twins, internet-of-things, and machine-learning. This report evaluates Australia’s current performance and trajectory in these areas, with a focus on the contributions of key organisations: the ARC Training Centre for Automated Manufacture of Advanced Composites, Australian Institute for Machine Learning (AIML), Immutable, Luyten 3D, Morse Micro, Neara, and Redbelly Network.

Australia’s strengths lie in its robust research ecosystem, government support, and a growing start-up culture. However, challenges remain, including talent shortages, fragmented funding, and scale-up barriers. Notable programmes and investments are accelerating progress, but Australia faces stiff competition from global leaders. The next five years present opportunities for collaboration and export, balanced against risks such as supply chain vulnerabilities and regulatory uncertainty.

Strengths

Robust Research and Innovation Ecosystem

Australia benefits from a strong academic and research infrastructure, exemplified by the ARC Training Centre for Automated Manufacture of Advanced Composites and the Australian Institute for Machine Learning (AIML). These institutions are at the forefront of research in composite-materials, machine-learning, and advanced-manufacturing-techniques, providing a pipeline of innovation and skilled graduates.

Government Support and Policy Alignment

Federal and state governments have prioritised sovereign capability in dual-use technologies, with targeted funding for defence innovation, critical technologies, and advanced manufacturing. The Modern Manufacturing Strategy and Defence Innovation Hub are notable policy drivers, supporting translation from research to commercialisation.

Emerging Global Niche Players

Australia is home to globally recognised technology companies such as Immutable (blockchain solutions), Luyten 3D (3d-printing-for-manufacturing), Morse Micro (internet-of-things), Neara (digital-twins), and Redbelly Network (blockchain-technology). These firms are building specialised expertise and IP, positioning Australia as a source of innovative dual-use solutions.

Cross-Sector Technology Transfer

Dual-use technologies are being adopted across sectors, including defence, aerospace, mining, healthcare, and infrastructure. The cross-pollination of ideas and applications accelerates innovation cycles and enhances resilience.

Weaknesses

Talent Shortages and Skills Gaps

Despite world-class research, Australia faces shortages in highly skilled personnel, particularly in machine-learning, blockchain-technology, and advanced manufacturing. Retaining top talent is challenging due to global competition and higher salaries abroad.

Scale-Up and Commercialisation Barriers

Australian start-ups and research spinouts often struggle to scale due to limited access to late-stage funding, risk-averse investment culture, and a relatively small domestic market. Many promising innovations fail to transition from prototype to mass production or export.

Fragmented Ecosystem and Coordination

While there are pockets of excellence, the innovation ecosystem is fragmented. Collaboration between academia, industry, and government can be inconsistent, leading to duplication of effort and missed opportunities for synergy.

Infrastructure and Supply Chain Constraints

Australia’s geographic isolation and limited local supply chains for advanced materials and electronics can slow development and increase costs, particularly for composite-materials and internet-of-things hardware.

Regulatory and Standards Uncertainty

Rapidly evolving fields such as blockchain-technology and digital-twins face regulatory uncertainty, which can deter investment and slow adoption, particularly in defence and critical infrastructure.

Notable Programmes & Investments

ARC Training Centre for Automated Manufacture of Advanced Composites

The ARC Training Centre for Automated Manufacture of Advanced Composites is a flagship initiative, integrating research, industry, and defence to advance composite-materials and advanced-manufacturing-techniques. The Centre’s focus on automation, robotics, and digital design is accelerating the adoption of next-generation composites in aerospace and defence.

Australian Institute for Machine Learning (AIML)

The Australian Institute for Machine Learning (AIML) is a national leader in machine-learning research, with strong industry partnerships in defence, healthcare, and autonomous systems. AIML’s work on explainable AI and robust perception systems is directly relevant to dual-use applications.

Immutable

Immutable is a pioneer in blockchain and blockchain-technology, specialising in scalable, energy-efficient solutions for digital assets and secure transactions. Its platforms are being explored for defence supply chain integrity and secure communications.

Luyten 3D

Luyten 3D is advancing 3d-printing-for-manufacturing with a focus on large-scale construction and rapid prototyping. Its technologies have applications in deployable infrastructure, disaster response, and forward-operating bases.

Morse Micro

Morse Micro is a global leader in ultra-low-power Wi-Fi chips for the internet-of-things. Its technology enables secure, long-range, and energy-efficient connectivity, critical for defence sensors and autonomous platforms.

Neara

Neara provides advanced digital-twins solutions for critical infrastructure, including power grids and transport networks. Its platform supports real-time monitoring, scenario planning, and resilience assessments, with direct defence applications.

Redbelly Network

Redbelly Network is developing high-performance blockchain-technology for secure, scalable, and auditable transactions. Its technology is being piloted for secure communications and logistics in sensitive environments.

Competitive Comparison

United States

The US remains the global leader in all assessed technologies, driven by massive federal investment, defence procurement, and a deep innovation ecosystem. Australia’s niche strengths are in research and specialised applications, but it lacks the scale and integration of US efforts.

European Union

The EU excels in regulatory harmonisation, cross-border collaboration, and advanced manufacturing. Australia is competitive in research but lags in coordinated commercialisation and standardisation.

China

China is rapidly scaling capabilities in advanced-manufacturing-techniques, 3d-printing-for-manufacturing, and machine-learning, supported by state-driven investment and industrial policy. Australia cannot match China’s scale but offers higher trust, transparency, and alignment with Western standards.

Regional Peers

Compared to regional peers (Japan, South Korea, Singapore), Australia is strong in research but less effective in translating innovation to global markets. Australia’s start-up ecosystem is smaller and less connected to global supply chains.

Opportunities for Collaboration / Export

Defence and Security Alliances

Australia’s participation in AUKUS, the Quad, and Five Eyes creates opportunities for technology collaboration, particularly in machine-learning, digital-twins, and composite-materials. Joint R&D and supply chain integration can accelerate capability development.

Export of Niche Technologies

Australian firms such as Morse Micro, Immutable, and Redbelly Network are well positioned to export secure internet-of-things and blockchain-technology solutions to allied nations, leveraging Australia’s reputation for quality and trust.

Research Partnerships

Deepening partnerships with US, UK, and EU research institutions can enhance knowledge transfer, access to testbeds, and joint commercialisation, especially for advanced-manufacturing-techniques and composite-materials.

Indo-Pacific Engagement

Australia can leverage its proximity and diplomatic relationships to support infrastructure and security modernisation in Southeast Asia and the Pacific, exporting digital-twins, 3d-printing-for-manufacturing, and internet-of-things solutions.

Risks & Mitigation

Supply Chain Disruption

Risk: Reliance on imported components and materials, especially for composite-materials and internet-of-things hardware, exposes Australia to geopolitical shocks.

Mitigation: Invest in local manufacturing capacity, diversify suppliers, and stockpile critical inputs.

Cybersecurity and Data Sovereignty

Risk: Increased adoption of blockchain-technology, digital-twins, and internet-of-things expands the attack surface for cyber threats.

Mitigation: Strengthen cybersecurity standards, mandate sovereign data storage, and invest in secure-by-design principles.

Regulatory Lag

Risk: Unclear or inconsistent regulation of blockchain-technology, autonomous systems, and AI could slow adoption and deter investment.

Mitigation: Proactive engagement between government, industry, and academia to develop adaptive, risk-based regulatory frameworks.

Talent Drain

Risk: High demand for skilled personnel in global markets may lead to brain drain.

Mitigation: Expand STEM education, incentivise talent retention, and attract international experts through targeted migration programmes.

Fragmentation and Duplication

Risk: Lack of coordination could lead to wasted resources and missed opportunities.

Mitigation: Foster national coordination bodies, shared testbeds, and cross-sector consortia.

Outlook (5-year)

Australia is on a positive trajectory in dual-use technologies, with momentum in research, early-stage innovation, and select commercial successes. Over the next five years, the following trends are anticipated:

• Acceleration of Commercialisation: Increased government and private investment, combined with defence procurement, will help more innovations transition from lab to market, particularly in composite-materials, digital-twins, and machine-learning.
• Integration into Defence and Critical Infrastructure: Adoption of 3d-printing-for-manufacturing, internet-of-things, and blockchain-technology will become standard in defence logistics, supply chain assurance, and autonomous systems.
• Export Growth: Australian firms will expand exports of niche dual-use technologies, especially to allied and Indo-Pacific markets.
• Talent Development: Targeted education and migration policies will begin to address skills shortages, though competition for talent will remain intense.
• Resilience Building: Supply chain and cybersecurity investments will enhance the resilience of Australia’s technology base.
• Regulatory Maturation: Adaptive regulatory frameworks will emerge, supporting responsible innovation in AI, blockchain, and digital twins.

Conclusion:
Australia’s dual-use technology ecosystem is maturing, with clear strengths in research, niche commercialisation, and trusted partnerships. While challenges remain, strategic investment, national coordination, and international collaboration will be critical to realising Australia’s potential as a leading provider of secure, innovative dual-use technologies over the next five years.