Japan, UK to launch dual-use tech startup fund

Key facts

• Japan and the UK will establish a fund to support startups developing dual-use technologies.
• The fund will focus on fields such as artificial intelligence, quantum technology, drones, and space.
• This initiative aims to enhance national defense capabilities by integrating civilian innovation.
• Japan plans to offer advance payments for government procurement to support these startups.
• The concept of a 'dual-use startup ecosystem' was jointly announced by Japanese ministries in September 2024.

Japan and the United Kingdom are set to establish a joint fund aimed at supporting startups that develop dual-use technologies, encompassing fields like artificial intelligence, quantum computing, drones, and space applications. This collaboration seeks to strengthen national defense capabilities by fostering innovation that bridges civilian and military applications.

Japan's initiative, led by its Ministry of Defense and Ministry of Economy, Trade and Industry, aims to integrate private sector technologies into its defense acquisition strategy. The country has identified approximately 200 startups for potential support, including financial assistance and access to defense equipment. The Defense Innovation Science and Technology Institute, established in October 2024, is spearheading these efforts, drawing inspiration from models like the U.S. Defense Advanced Research Projects Agency (DARPA).

This push for a dual-use startup ecosystem is part of a broader strategy to bolster Japan's defense industry, which has faced challenges including low profitability and a historical reluctance from the private sector to engage in defense-related research due to anti-militarist norms. Previous policies dating back to 2013 have sought to encourage public-private partnerships, but implementation has been hindered by these factors.