From drones to space tech, Japan looks to startups to strengthen its defences
Tokyo is stepping up efforts to harness dual-use technologies – innovations developed for civilian purposes that can also have military applications – as it seeks to bolster national security while opening new markets for Japanese firms at home and abroad.
by Michiyo Ishida · CNA · JoinRead a summary of this article on FAST.
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SENDAI, Japan: From interceptor drones designed to take down aerial threats to nanoparticles that could reduce dependence on rare metals, Japan is looking to an unlikely source to strengthen its defences: startups.
Tokyo is stepping up efforts to harness dual-use technologies – innovations developed for civilian purposes that can also have military applications – as it seeks to bolster national security while opening new markets for Japanese firms at home and abroad.
The push comes as emerging technologies reshape modern warfare and economic security becomes a growing concern for governments around the world.
Japan wants to accelerate research and development of dual-use technologies not only at universities and national research institutions, but across the private sector.
Its plan is to set up research bases outside educational institutions by fiscal year 2030 by strengthening collaboration with the public and private sectors.
JAPAN SEEKS STARTUP FIREPOWER
For Japanese drone company Terra Drone, that shift is already under way.
Founded in 2016, the company has developed drones for applications ranging from search-and-rescue operations to construction and infrastructure inspections.
It is now expanding into defence and is seeking to raise 14.5 billion yen (US$91 million) to fuel its growth.
Founder and CEO Toru Tokushige said the widespread use of relatively cheap drones, such as in conflicts in Ukraine and the Middle East, has exposed a costly weakness in traditional air defence systems.
“Shahed is very dangerous, very commoditised and very cheap,” he said, referring to Iranian-designed drones that have been used extensively in recent conflicts.
Defending against Shahed drones is resource-intensive and expensive.
Tokushige said he has visited Japan's Ministry of Defense more than 50 times to make the case for interceptor drones that could offer a cheaper way of countering such threats.
“I continuously explained, these interceptor drones have become really important,” he added.
In June, Terra Drone acquired stakes in two Ukrainian interceptor drone companies, giving it access to an environment where the technology can be tested and refined frequently.
But the company still faces obstacles, including restrictions on arms exports from Ukraine.
“Every day, we can do testing and also prices are reasonable,” Tokushige said. “But now we are trying to install autonomous operation and technology. And in terms of export regulation, we are trying to find a solution.”
Japan’s latest defence white paper highlights the need to strengthen the country's defence industrial and technological base as threats from drones and other emerging technologies grow.
The government is also seeking to encourage more startups to enter a sector traditionally dominated by large industrial groups.
“Japan is also in danger of drone attacks from its neighbours,” said Terra Drone general manager Yuji Morita. “We are trying to take the lead in the defence business, trying to advance with speed.”
FROM NANOPARTICLES TO NATIONAL SECURITY
That drive extends beyond companies traditionally associated with aerospace or defence.
In Sendai, in northeastern Miyagi Prefecture, startups have become an important engine of economic growth since the devastating 2011 Great East Japan Earthquake.
Now, some of them are examining whether technologies developed for entirely different purposes could also contribute to Japan's national and economic security.
NanoFrontier, a Tohoku University spinoff founded in April last year, is exploring new uses for nanoparticles.
Its potential applications range from manufacturing to water treatment.
The technology can, for instance, be used to detect toxic PFAS (per- and polyfluoroalkyl substances) chemicals.
The company is also exploring whether it could help produce rechargeable batteries without relying on rare metals – resources that have become increasingly important to economic security.
“Based on technology that Tohoku University developed for pharmaceuticals, we are reproducing nanoparticles as energy and green materials,” its CEO Seiya Inoue said.
NanoFrontier has raised 150 million yen in venture capital so far.
This year, it was selected for a dual-use programme run by the Japan External Trade Organization, allowing the firm to explore both commercial and defence applications for its technology in overseas markets, particularly the United States.
“There is a global movement towards dual use and the importance of economic security,” said Inoue. “Our company sits on such a big movement. So we will keep going as planned, riding on that movement.”
LOOKING TO SPACE
Another Sendai startup sees similar opportunities much further above Earth.
ElevationSpace, a Tohoku University spinoff founded in 2021, is developing spacecraft capable of returning materials and data from orbit.
The company is aiming to launch its first re-entry satellite from Germany next year, as part of a longer-term ambition to build a space transportation network.
Its chief operating officer Kazunari Miyamaru said the company wants to provide a more frequent way of bringing payloads back from space.
“Currently, our International Space Station is in orbit,” he said. “The number of returns is very limited – three or four times. But our concept is to provide our high-cadence return capability for the station.”
ElevationSpace has attracted about 10 billion yen in funding. Last year, it participated in Defense and Security Equipment International Japan, a major defence trade exhibition.
“In general, space technology will be very close to dual-use technology,” said Miyamaru. “We are still exploring some opportunities.”
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