In order to enhance military capabilities and defense industry, the Japanese government has been actively seeking cooperation with companies that possess dual-use military and civilian technologies in recent years to counter threats from China, North Korea, and Russia.
One of the small companies that has attracted the attention of the Japanese government is Mitsufuji, headquartered in Kyoto. Established nearly 70 years ago, Mitsufuji was initially a textile manufacturer specializing in decorative sashes for traditional Japanese clothing. Its core business involves producing consumer-oriented wearable devices. In the near future, it may spin high-tech fibers to protect fighter jets from electromagnetic interference.
Nurturing domestic defense industry is a crucial part of Japan’s 43 trillion yen ($2,750 billion) military construction strategy launched in 2022, aimed at addressing escalating security threats from China (CCP), Russia, and nuclear-armed North Korea.
However, Japan faces challenges. Unlike some of its allies, Japan lacks defense industry giants like Lockheed Martin Corp in the US and BAE Systems in the UK, which can rely almost entirely on military work for sales. Even Mitsubishi Heavy Industries, a leading defense contractor in Japan, generates less than one-fifth of its total revenues from sales of fighter jets, warships, and other military equipment.
The rapidly changing landscape of modern warfare, including the use of small drones in the Russia-Ukraine conflict, has prompted the Japanese Self-Defense Forces to collaborate with small companies and expand procurement scope.
Former Defense Minister Minoru Kihara told Reuters, “If we don’t forge ahead on our own, we won’t be able to keep up with global trends. Japan should invest in research and development that contributes to national security, including dual-use technologies, without being afraid of failure.”
In the latter half of 2023, the government began holding meetings with multiple companies simultaneously to understand their innovative products and technologies. Mitsufuji has provided the Self-Defense Forces with wristbands to monitor heatstroke risk and participated in the second round of such meetings.
Ayumu Mitera, CEO of Mitsufuji, told Reuters, “We don’t know what the demand is, so we basically showed them what we have. We’re not looking to enter the defense business, but if there is a demand, we’re willing to make proposals.”
Mitsufuji utilizes its highly conductive silver-coated fibers to produce a prototype of a small hangar tent that can shield military aircraft and other equipment from electromagnetic interference.
In some cases, the meetings have led to transactions. Last year, the Japan Air Self-Defense Force (ASDF) procured powered exoskeleton “Muscle Suits” from Tokyo start-up Innophys and tested cutting-edge wind speed measuring devices produced by Kyoto-based Metro Weather.
Kazuhisa Shimada, former Vice Minister of Defense, said, “Matching dual-use technologies with national security cannot be achieved unless the government plays an active role rather than waiting for companies to come to them.”
Since late 2023, the Japan Air Self-Defense Force has been actively engaging with companies, holding discussions with about 300 companies in downtown Tokyo about their space business.
Colonel Ryoji Kondo of the Air Self-Defense Force was a pilot of the F-2 fighter jet. He stated, “Times have changed, and we truly need the help of start-up companies.”
His team is currently in discussions for collaboration with start-ups CollaboGate Japan and Wyvern.
The government also assists small companies in setting up booths at international defense exhibitions, promoting their products under the Japanese flag, and attracting interest from overseas customers.
Ayumu Mitera, CEO of Mitsufuji, stated that his company has exhibited at several such exhibitions, including the Vietnam Defense Expo last month. He mentioned that the company has reached agreements to supply high-tech fibers to companies in Asia and Europe.
Minoru Kihara mentioned that building these bridges can also strengthen security ties between Japan and friendly countries. “Even if the same technology or equipment cannot be used, using the same components can enhance security cooperation between nations.”
(This article references Reuters reporting)