Research Project

Investigator:
Gabor Szecsi

Abstract:
In 2011, Ileana Ros-Lehtinen, chairman of the House Foreign Affairs Committee, stated that “the main goal of export controls is to keep certain states or non-state actors from developing or acquiring military capabilities that could threaten important national security interests.” For this purpose, the United States imposed a strict licensing regime to control foreign access to military equipment and technology. In the last two decades, however, private innovation and entrepreneurship invaded the space and defense sector, creating a new challenge for the government. Since entrepreneurs offer solutions to everyday problems they create international demand for their products. However, when sensitive and restricted technologies are used for a new solution, the government faces a new and interesting dilemma: If it forbids the export of the technology, the company will be unable to satisfy the demand and that leaves open the opportunity for another company from a less restrictive jurisdiction to step in and fill the gap. It means that an overly restrictive regulatory regime has negative effects on competitiveness while an overly liberal regulatory regime risks national and global security. This research project analyses and compares the export-control protocols of the European Union and the United States as a function of interstate strategic competitiveness. Then, it will provide guidelines and principles for a future export-control reform that keeps balance between national security interests and interstate strategic competitiveness.