United Kingdom – Technology Performance Digest

United Kingdom Dual-Use Technology Assessment Report (2025)

Executive Summary

This report provides a comprehensive assessment of the United Kingdom’s performance and trajectory in select dual-use technologies as of June 2025. The analysis focuses on the following technology domains: advanced manufacturing techniques, biometric authentication and systems, blockchain technology, composite materials, digital twin technology, edge computing, quantum key distribution, and wearable health tech. The report also considers the contributions of key organisations, including Cera Care, Dexory, Imperial College London, Keyless, Manufacturing Engineering Centre, Neuranics, NexGen Cloud, Quantum Communications Hub, and iCOMAT.

The UK continues to demonstrate robust innovation capabilities, supported by a vibrant research ecosystem, active public-private partnerships, and targeted government investment. The country is particularly strong in quantum communications, advanced manufacturing, and digital health, although it faces challenges in scaling up and commercialising certain technologies. The UK’s dual-use technology base is well-positioned for international collaboration and export, but it must address skills shortages, regulatory uncertainties, and global competition to maintain its edge.

Strengths

Research Excellence and Innovation Ecosystem

The UK boasts a world-class research base, with institutions such as Imperial College London and the Quantum Communications Hub leading in fundamental and applied research. This ecosystem is bolstered by strong linkages between academia, industry, and government, fostering rapid technology transfer and innovation.

Advanced Manufacturing Techniques

Organisations like iCOMAT and the Manufacturing Engineering Centre exemplify the UK’s leadership in advanced manufacturing techniques, including additive manufacturing, automated fibre placement, and robotics. These capabilities underpin both defence and civil sectors, enabling rapid prototyping, lightweight structures, and reduced production costs.

Quantum Key Distribution

The Quantum Communications Hub has positioned the UK as a European leader in quantum-key-distribution, with successful demonstrations of secure quantum networks and ongoing pilot projects with government and industry partners. The UK’s regulatory environment and early investments have accelerated the maturation of quantum-secure communications.

Digital Health and Wearables

Cera Care and Neuranics are at the forefront of wearable-health-tech, leveraging AI, IoT, and sensor technologies for remote monitoring and predictive healthcare. The integration of these solutions into the NHS and defence medical services highlights the dual-use potential and scalability of UK innovations.

Biometric Authentication

Companies like Keyless are pioneering privacy-preserving biometric-authentication and biometric-authentication-systems using advanced cryptography and behavioural biometrics. These technologies are increasingly adopted in financial services, border security, and secure communications.

Edge Computing and Cloud Infrastructure

Dexory and NexGen Cloud are advancing edge-computing and cloud-native solutions, enabling real-time data processing for logistics, manufacturing, and defence applications. Their platforms support digital twins, autonomous systems, and secure data sharing across distributed environments.

Composite Materials

The UK’s expertise in composite-materials is exemplified by iCOMAT and the Manufacturing Engineering Centre, which supply the aerospace, automotive, and defence sectors with next-generation materials offering superior strength-to-weight ratios and durability.

Weaknesses

Scaling and Commercialisation

Despite strong research outputs, the UK often struggles to scale up and commercialise emerging technologies. This is particularly evident in blockchain-technology and some digital-twin-technology applications, where pilot projects have not consistently transitioned to large-scale deployments.

Skills Shortages

There is a persistent shortage of skilled professionals in quantum engineering, cyber security, advanced manufacturing, and AI. This talent gap threatens to slow the development and adoption of dual-use technologies, especially as global competition for expertise intensifies.

Fragmented Ecosystem

The UK’s innovation landscape, while vibrant, is sometimes fragmented, with overlapping initiatives and insufficient coordination between regional clusters, academia, and industry. This can lead to duplication of effort and missed opportunities for synergy.

Regulatory and Standards Uncertainty

Rapid technological change has outpaced the development of regulatory frameworks and standards, particularly in areas such as biometric-authentication-systems and blockchain-technology. This creates uncertainty for investors and slows adoption in sensitive sectors like defence and healthcare.

Funding Gaps for Scale-Ups

While early-stage funding is relatively accessible, there is a notable gap in growth capital for scaling high-potential dual-use technology firms. This limits the ability of UK companies to compete with better-funded international rivals.

Notable Programmes & Investments

Government Initiatives

Industry-Led Projects

Academic-Industry Collaborations

Competitive Comparison

United States

The US remains the global leader in most dual-use technologies, with greater scale, deeper capital markets, and strong integration between defence and commercial sectors. However, the UK is competitive in quantum-key-distribution, composite-materials, and digital health, often serving as a key partner or supplier to US programmes.

European Union

The UK’s innovation ecosystem is on par with leading EU countries like Germany and France, especially in advanced-manufacturing-techniques and wearable-health-tech. However, Brexit-related barriers have complicated collaboration and market access in some areas.

China

China is rapidly advancing in blockchain-technology, AI, and quantum communications, supported by large-scale state investment. The UK’s open innovation model and regulatory frameworks provide advantages in trust and interoperability, but scale remains a challenge.

Israel and Singapore

These countries excel in biometric-authentication, cyber security, and defence innovation. The UK’s strengths in privacy-preserving biometrics and digital health are competitive, but further investment is needed to match the agility and focus of these smaller innovation hubs.

Opportunities for Collaboration / Export

International Partnerships

Export Markets

Academic and Industry Networks

Risks & Mitigation

Technology Leakage and IP Theft

The dual-use nature of these technologies increases the risk of IP theft and unauthorised transfer to hostile actors. The UK’s open research environment, while beneficial for innovation, requires robust export controls, cyber security measures, and international cooperation on technology protection.

Mitigation:

Regulatory and Ethical Challenges

Rapid innovation in biometric-authentication-systems, AI, and wearable-health-tech raises ethical and privacy concerns, potentially undermining public trust and market adoption.

Mitigation:

Supply Chain Vulnerabilities

Dependence on foreign suppliers for critical components (e.g., semiconductors, rare earths) exposes the UK to supply chain risks.

Mitigation:

Skills Shortages

The shortage of skilled professionals in quantum, AI, and advanced manufacturing could constrain growth.

Mitigation:

Outlook (5-year)

Technology Trajectory

Over the next five years, the UK is expected to consolidate its leadership in quantum-key-distribution, composite-materials, and digital health. Significant progress is anticipated in the commercial deployment of digital-twin-technology, edge-enabled systems, and privacy-preserving biometric-authentication-systems. The maturation of blockchain-technology and sovereign cloud infrastructure will further enhance resilience and trust in critical systems.

Defence and Security Applications

Dual-use technologies will increasingly underpin UK defence capabilities, from secure communications and logistics to medical support and autonomous systems. The integration of digital twins, edge computing, and advanced manufacturing will enable faster, more adaptive responses to emerging threats.

Economic and Export Potential

The UK’s dual-use technology sector is poised for growth, with expanding export opportunities in Europe, Asia-Pacific, and the Middle East. Continued investment in innovation, skills, and international collaboration will be critical to capturing global market share.

Policy and Regulatory Evolution

The UK government is likely to introduce more adaptive, risk-based regulatory frameworks to keep pace with technological change, balancing innovation with security and ethical considerations.

Risks and Uncertainties

Geopolitical tensions, supply chain disruptions, and global competition remain significant risks. The UK’s ability to maintain its innovation edge will depend on sustained investment, agile policy-making, and effective risk mitigation.

Conclusion:
The United Kingdom remains a leading player in dual-use technologies, with particular strengths in quantum communications, advanced manufacturing, and digital health. To sustain and enhance its position, the UK must address scale-up challenges, close skills gaps, and strengthen regulatory and security frameworks. Strategic investment and international collaboration will be key to realising the full potential of the UK’s dual-use technology base over the next five years.