The Defense Ministry and the Economy, Trade and Industry Ministry have announced plans to establish a new framework that will allow startups to contribute their advanced technologies to the development of defense equipment. In an increasingly high-tech combat landscape, it is crucial for defense equipment to incorporate cutting-edge technologies from the private sector, such as satellites and drones.
By encouraging startups to participate in Japan’s defense industry, the government aims to bolster the country’s defense capabilities while also fostering growth in related industries. This initiative, known as the “dual-use startup ecosystem,” was agreed upon by both ministries earlier.
The framework will be implemented in three stages. First, the Defense Ministry will identify specific defense equipment requirements. Then, the Economy, Trade and Industry Ministry will compile a list of startups that possess suitable advanced technologies to meet those needs. Practical considerations for developing defense equipment will follow.
Ultimately, the government plans to procure products and services from startups through negotiated contracts. This approach aims to incentivize companies with high-level technology expertise to enter into the defense industry. Additionally, assistance will be provided for mass production of these products.
To facilitate startup participation in government tenders for contracts, eligibility criteria will be relaxed. Furthermore, a defense innovation technology research institute is set to be established by October under the purview of the Defense Ministry. This institute will support startups in their development efforts for particularly promising technologies.
This planned framework draws inspiration from its American counterpart – The U.S. Defense Department’s Defense Innovation Unit (DIU). The DIU connects companies with dual-use potential with Pentagon resources and has been successful in identifying private sector tech applicable both militarily and commercially.
In Japan however, progress on dual use has been slow due to cautiousness among Japanese companies about transferring their technological capabilities into defense equipment applications. The government hopes that this new framework can revitalize Japan’s defense industry by fostering greater cooperation between public and private sectors.
