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Japan Government Outlines Comprehensive Plan for Expanding Its Defense Industry Globally.
In a report from October 2024, the Japanese government outlined a comprehensive strategy aimed at strengthening its national defense industry and promoting exports on the international stage. This initiative is part of broader efforts to enhance the country's defense capabilities while improving the competitiveness of domestic companies in a global market facing strategic and technological challenges.
Japan is focused on incorporating innovation and fostering collaboration with allies to sustain a competitive and adaptable industry (Picture source: Japan MoD)
According to the Ministry of Economy, Trade, and Industry, competitiveness is key to success in the defense sector. By enabling companies to improve specific weapon systems and compete for military contracts, Japan seeks to bolster its defense industry and address growing security needs.
Japan’s defense sector relies on a complex supply chain that includes a significant number of companies operating in both civilian and military markets. To expand this industrial base, the government plans to encourage more companies, including small enterprises, to enter the defense market. Supporting these emerging players is seen as essential for building a resilient industry capable of meeting future challenges.
The defense industry is characterized by the integration of large corporations and SMEs, with significant overlap between civilian and military technologies. These boundaries are rapidly diminishing due to technological advancements. In response, Japan is focused on incorporating innovation and fostering collaboration with allies to sustain a competitive and adaptable industry.
In addition to domestic consolidation, Japan views export promotion as a key strategic priority. Although the country already produces a wide range of exportable defense equipment, such as armored vehicles, missile technologies, naval vessels, transport and patrol aircraft, light arms, and anti-tank weapons, it seeks to further capitalize on this potential.
Opening new markets for defense exports is expected to provide financial support for the industry while fostering strategic international partnerships. Currently, Japan’s defense collaborations are primarily focused on the United States and the United Kingdom.
Cooperation with the United States includes joint development of critical projects such as SM-3 missile systems, AN/SPY-1 and AN/SPY-7 radars, upgrades to F-15 fighter jets, and licensed production of helicopters.
Cooperation with the United States includes joint development of critical projects such as SM-3 missile systems, AN/SPY-1 and AN/SPY-7 radars, upgrades to F-15 fighter jets, and licensed production of helicopters. (Picture source: Japan Air Self-Defense Force)
Collaboration with the United Kingdom remains in its early stages but is centered on the development of a next-generation aircraft under the Global Combat Air Program (GCAP). Known in Japan as the F-X, this aircraft is intended to replace the Mitsubishi F-2 within the Japan Air Self-Defense Force.
In this context, Japan has made significant progress in exporting equipment for the GCAP program. These components could be integrated not only in the UK and Italy but also offered to potential buyers such as Saudi Arabia.
To meet strategic needs, Japan has also identified "critical materials," including semiconductors, batteries, and aircraft components, as essential for defense. These materials are supported by private investment to ensure a stable supply amidst uncertain international conditions.
Additionally, the Acquisition, Technology & Logistics Agency (ATLA) has announced collaborations with European companies, notably in France and Germany, to develop advanced technologies like electromagnetic railguns. These partnerships highlight Japan’s commitment to technological innovation in defense.
Japan also promotes initiatives like J-Startup to foster collaborations with innovative startups in areas such as drones, artificial intelligence, and advanced materials. This collaborative ecosystem integrates startups, large corporations, and academic institutions to align technological advancements with defense needs.
Japan's strategy for global growth in its defense industry aims to combine domestic competitiveness with international engagement. By investing in new enterprises, diversifying partnerships, and building a robust industrial base, Japan seeks to strengthen its security while establishing itself as a significant player in the global defense market. This approach reflects a pragmatic and forward-looking vision tailored to the challenges of a rapidly evolving world.