From Drones to Space Tech, Japan Turns to Startups to Build Up Its Defenses

Japan is turning to startups — small, new companies — to help protect the country from modern military threats. The Japanese government wants these companies to develop new technologies that can be used for both everyday life and national defense. One big focus is drones, which have become powerful and cheap weapons in recent conflicts around the world. Japan hopes that by working with startups, it can build better defenses faster and at a lower cost.

One Japanese drone company called Terra Drone is already leading the way. It was started in 2016 and first made drones for jobs like search-and-rescue missions, construction projects, and checking bridges and power lines. Now the company is moving into defense and is trying to raise about $91 million to grow its business. Its founder and CEO, Toru Tokushige, sees a big opportunity in building drones that can stop enemy drones.

Tokushige has been pushing Japan's Ministry of Defense to take interceptor drones seriously. He has visited the ministry more than 50 times to explain why these drones are so important. His argument is based on what he has seen in real conflicts, where cheap enemy drones have caused serious problems for expensive traditional defense systems. 'I continuously explained, these interceptor drones have become really important,' he said.

One example is a type of drone called the Shahed, which was designed in Iran. Tokushige described it as 'very dangerous, very commoditised and very cheap.' Stopping these drones using traditional weapons is very costly. Interceptor drones could be a much cheaper solution because they use drones to take down other drones, rather than expensive missiles or aircraft.

To improve its technology, Terra Drone bought parts of two Ukrainian companies that build interceptor drones. Ukraine has been using drones heavily in its ongoing conflict, making it a real-world testing ground. However, the company faces some challenges, including rules that limit the export of weapons technology from Ukraine. 'Every day, we can do testing and also prices are reasonable,' Tokushige said.

The Japanese government is also thinking bigger than just drones. It wants to speed up research into what are called 'dual-use technologies' — inventions that work for both regular civilian life and the military. Plans include setting up research centers outside of universities and working more closely with private companies by the year 2030. The government also wants to open the defense industry to more startups, since it has long been controlled by large, older companies.

Japan's official defense report says the country needs to improve its defense technology quickly. Threats from drones and other new military tools are growing, and Japan's neighbors have become a source of concern. Terra Drone's general manager, Yuji Morita, summed up the challenge clearly: 'Japan is also in danger of drone attacks from its neighbours. We are trying to take the lead in the defence business, trying to advance with speed.' With startups like Terra Drone leading the charge, Japan is hoping innovation can help keep the country safe.