Japanese Govt to Create Framework to Use Startups’ Advanced Technologies for Development of Defense Equipment

The Yomiuri Shimbun

20:00 JST, September 19, 2024

The Defense Ministry and the Economy, Trade and Industry Ministry announced on Wednesday that they will create a new framework in which advanced technologies of startups can be utilized for the development of defense equipment as dual-use projects.

As combat has become increasingly high-tech worldwide, it is essential for defense equipment to utilize advanced technologies developed by the private sector, such as satellites and drones.

By encouraging startups to participate in the nation’s defense industry, the government aims to strengthen Japan’s defense capabilities and help related industries grow.

The ministries had earlier agreed to set up the new framework, named the “dual-use startup ecosystem.”

Under the framework, the ministries will promote dual use in three stages.

First, the Defense Ministry will consolidate the defense equipment that is needed, and then the Economy, Trade and Industry Ministry will compile a list of startups that possess advanced technologies suitable to fulfill those needs.

The ministries will then begin practical consideration for developing defense equipment.

Finally, the government will procure products and services under negotiated contracts from startups that have their own high-level tech to encourage the companies to join the defense industry. The government will also assist the companies in mass-producing the products.

The government will also relax criteria for startups to be eligible to participate in government tenders for contracts.

For especially promising technologies, a defense innovation technology research institute, which the Defense Ministry will establish in October, will assist the startups with development.

The U.S. Defense Department’s Defense Innovation Unit (DIU) has searched for tech in the private sector that could have dual defense and civilian uses by connecting companies and the Pentagon.

The planned framework in Japan is expected to be a Japanese version of the DIU.

Although Japanese companies possess high technological capabilities, they are very cautious about transferring them for defense equipment. Thus, dual use in Japan has progressed slowly.

The government aims to revitalize the nation’s defense industry by enhancing cooperation between the public and private sectors under the new framework.