Japan accelerates defence technology development across seven capability domains through international partnership initiatives.

 

At the end of 2022, Japan embarked on its most significant shift in defence policy since World War II, introducing strategies that reshaped its approach to national security. 

Driven by an increasingly complex regional security environment and Russia's invasion of Ukraine that year, Japan committed to increasing its defence spending to 2% of GDP by 2027 – a historic departure from its traditionally cautious stance.

This transformation, which was backed by a planned investment of JPY43 trillion (approximately USD320 billion) over five years, reflects Japan's recognition of the urgent need to modernise its military capabilities in response to these evolving threats.

The newly established Defense Innovation Technology Institute, modelled after the US’s Defense Advanced Research Projects Agency (DARPA), exemplifies Japan's commitment to accelerating technological innovation. With a dedicated budget of USD140 million and staffed by 100 personnel, including experts in artificial intelligence (AI) and robotics, this institute represents Japan's push to focus on emerging defence technology.

Japan's defence technology strategy focuses on seven key capabilities (explained below), including standoff defence capabilities, integrated air and missile defence, and uncrewed defence capabilities. This is supported by significant research and development (R&D) funding – approximately USD26 billion over the next five years – representing a 4.5-fold increase from previous spending levels.

The strategy emphasises rapid acquisition and deployment of new technologies, moving away from traditional decade-long development cycles to ensure Japan's capabilities remain current and effective in an era of rapid technological change. 

For defence technology companies, whether established players or innovative start-ups, Japan's defence market evolution offers a rare combination: substantial funding, clear technological priorities and a genuine openness to international collaboration.

 

Defence tech priorities

Japan has identified nine critical fields for defence-related R&D as part of its modernisation efforts. The government recognises it has lagged in dual-use technology development – capabilities that serve both civilian and military applications – and is now moving decisively to close this gap. The nine designated fields span traditional and emerging technology domains: 

• Information security: Encompassing cybersecurity and complex defence network protection.

• Telecommunications: Focused on secure military communications capabilities.

• Sensing: Including high-precision positioning systems for enhanced situational awareness.

• Energy: Supporting next-generation defence platforms and systems.

• Computing: Advancing processing capabilities for modern warfare requirements.

• Information processing: With particular emphasis on AI integration.

• Materials: Developing advanced substances for defence applications.

• Autonomous and automation technology: Centred on advanced drone system development.

• Machinery: Including critical extended-flight technology capabilities.

Ghost Robotics' quadruped at DSEI Japan 2023. (DSEI Japan)

 

Get to know three key security policy documents:

National Security Strategy

Revised in December 2022, Japan’s National Security Strategy (NSS) serves as the country's highest-level security policy document. It provides strategic guidance across various domains, including diplomacy, defence, economic security, technology, cyber, maritime, space, intelligence and energy.

The NSS outlines Japan's national interests, such as maintaining sovereignty and territorial integrity, and ensuring the safety of its citizens. It also emphasises Japan's commitment to universal values like freedom, democracy and human rights while maintaining a defence-oriented policy that adheres to the country’s three 'Non-Nuclear Principles'.

The strategy emphasises the Japan-US Alliance as the cornerstone of Japan’s security. It also highlights the need for enhanced cooperation with like-minded countries to address the regional threats from nations like China, North Korea and Russia. The NSS also introduces new capabilities such as counterstrike capabilities and focuses on cybersecurity enhancements to protect against evolving threats.

National Defense Strategy

The National Defense Strategy (NDS) complements the NSS by detailing how Japan will elevate its military capabilities to address current and future threats. Released alongside the NSS in December 2022, the NDS emphasises strengthening Japan's own defence architecture and bolstering joint deterrence with the US.

It also similarly underscores the importance of collaborating with its allies and partners in response to the deteriorating security environment. 

The NDS outlines plans to develop a 'Multi-Domain Defense Force', which integrates traditional military domains with newer areas, such as cyber and space. As with the NSS, the NDS mentions counterstrike capabilities, a significant shift in Japan’s defence posture, which allows it to strike enemy bases preemptively, if necessary.

Defense Buildup Program

The Defense Buildup Program (DBP) is Japan’s roadmap for enhancing its defence capabilities over a five-year period (2023-2027). This programme supports both the NSS and NDS by detailing specific investments and developments in key military areas.

The DBP focuses on seven critical areas that closely align with its partners' efforts, which are: standoff strike capabilities, integrated air and missile defence, uncrewed assets, cross-domain operations, command and control, force mobility and sustainability.

A major aspect of this plan is Japan’s acquisition of long-range missiles for standoff strikes, which will enable the country to defend its remote islands and potentially strike adversary targets, if necessary. The DBP also emphasises improving resilience through infrastructure upgrades, such as building ammunition depots and enhancing cybersecurity.

The strategy focuses on seven defence capability areas:

• Standoff strike capabilities: Designed to introduce air-, land- and sea-based long-range anti-ship and land-attack missiles to strengthen island defence, particularly the Senkaku Islands. Enables strike operations against targets in adversary territories if needed, although Japan emphasises these would only be used after an adversary initiates attacks.

• Integrated air and missile defence: Continued operation of Standard Missile-3 (SM-3) sea-based upper-tier exoatmospheric missile defence and Patriot Advanced Capability-3 (PAC-3) land-based lower-tier systems. Focused on strengthening responses to air threats, including cruise missiles and hypersonic weapons.

• Uncrewed defence assets: For strengthening air, maritime, undersea and land-based uncrewed capabilities to enhance operational effectiveness. Particularly important as a response to Japan's declining birthrate and ageing population affecting human resources.

• Cross-domain operations: Focused on operations across space, cyber and electromagnetic domains, giving it the name USADEN, which is an acronym for uchu (space), saibah (cyber) and denjiha (the electromagnetic spectrum). Includes space-based optical telescopes for space domain awareness by 2026, with the Japan Air Self-Defense Force overseeing space operations and the Japan Ground Self-Defense Force leading cyber-infrastructure development.

• Command, control and intelligence: Focused on strengthening intelligence-gathering capabilities and speeding up decision-making processes. Adds targeting capabilities to intelligence, surveillance and reconnaissance systems to support long-range strike capabilities.

• Mobile deployment capabilities:  Relating to the acquisition of medium and small vessels, transport ships and transport aircraft to enable the rapid deployment of forces and equipment to the Southwest Islands in a Taiwan contingency. Places particular emphasis on evacuation capabilities for residents in western areas of the Southwest Islands during crises.

• Sustainability and resilience: Focused on securing ammunition, petroleum, oil and lubricants while enhancing force resilience. Includes construction of ammunition depots, expanded domestic ammunition production, joint use of US military facilities and reinforcement of military facilities against electromagnetic pulse attacks.

This structured approach to defence technology development reflects Japan's commitment to building a modern, capable defence force while nurturing its domestic industrial base. It balances immediate operational needs with long-term technological development, ensuring Japan can respond to current threats while preparing for future challenges.

 

Three principles on the transfer of defence tech

To make these opportunities more accessible, Japan has revised its Three Principles on Transfer of Defense Equipment and Technology. For defence technology companies, understanding these guidelines is essential for successful market entry:

• Under the first principle, transfers are prohibited if they violate international treaty obligations or UN Security Council resolutions, or involve countries engaged in armed conflict.

• The second principle outlines when transfers are permitted: they must demonstrably contribute to peace, international cooperation, or Japan's security, and undergo rigorous examination with full transparency.

• The final principle focuses on control, requiring recipient countries to use equipment only for agreed purposes and obtain Japan's consent before any third-party transfers.

This revision aims to streamline defence equipment transfers while maintaining appropriate oversight. For businesses, this means easier access to a market backed by substantial investment – Japan's five-year defence budget.

The government's push to build an internationally competitive and export-capable domestic defence industrial base creates opportunities for overseas defence companies with world-leading capabilities to forge new partnerships with Japanese industry.

 

DSEI Japan

DSEI Japan provides a unique opportunity to engage directly with this evolving market, offering unparalleled access to key decision-makers from JMoD, ATLA and METI all under one roof. In a market where relationship building is paramount, this direct connection to Japan's defence establishment is invaluable for companies looking to contribute to this ambitious modernisation programme.
 

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