Japanese Government to Formulate First Defense Industry Base Strategy by 2026

Key points

On November 4, 2026, Defense Minister Koizumi and Economy Minister Akazawa held an opinion exchange meeting at the Ministry of Defense with major defense-related companies and economic organizations, initiating discussions toward formulating a defense industry base strategy. The government has decided to establish its first defense industry base strategy within 2026, aiming to strengthen the defense industry and stimulate economic activity. Minister Koizumi emphasized the importance of a virtuous cycle between defense and the economy and called for securing sustainable response capabilities. The strategy will focus on securing production capacity in preparation for emergencies, promoting exports of defense equipment, and strengthening research and development systems. [1] [2] [3]

Government Moves Toward Formulating Defense Industry Base Strategy

On November 4, 2026, Defense Minister Koizumi and Economy Minister Akazawa held an opinion exchange meeting at the Ministry of Defense with executives from major defense-related companies and economic organizations. This meeting was aimed at the government's first formulation of a "Defense Industry Base Strategy," which outlined policies to strengthen the defense industry and revitalize the economy. Minister Koizumi emphasized realizing a virtuous cycle between defense and the economy and stated that securing sustainable response capabilities is important. The defense industry is the foundation of national defense, and balancing economic strength with defense capability is required. [1] [4]

The government has decided to formulate its first defense industry base strategy within 2026. This is intended to fundamentally strengthen the defense industry in light of changes in the security environment and to ensure production capacity in emergencies while revitalizing the economy. Growth in the defense industry is also seen as contributing to strengthening deterrence, and responding to new forms of warfare utilizing advanced technologies such as AI and unmanned vehicles is considered important. The government plans for the Ministry of Defense and Ministry of Economy, Trade and Industry to collaborate in fostering industries with dual-use technologies. [2] [3]

Key Policies and Challenges of the Defense Industry Base Strategy

The defense industry base strategy sets securing production capacity in preparation for emergencies, promoting exports of defense equipment, and strengthening research and development systems as its main policies. Defense Minister Koizumi stated that strengthening the defense industry is indispensable to respond to new forms of warfare using AI and unmanned vehicles, and plans to establish a related independent administrative institution. This institution is expected to support exports of defense equipment, foster emerging companies, and promote technological innovation. The government plans to submit related bills to the ordinary Diet session in 2027 and launch the institution with about 300 staff members in October of the same year. [3] [2]

Discussions on the defense industry base strategy focus on four main challenges: strengthening the production base, creating innovation, cooperation with allied and like-minded countries, and strengthening supply chains. In response to these challenges, the government is considering specific measures such as presenting medium- to long-term demand forecasts, supporting capital investment, supporting startups, rationalizing export control systems, and stabilizing supply chains. These efforts aim for the sustainable development of the defense industry and a virtuous economic cycle. Furthermore, through fostering dual-use technologies, the government intends to utilize advanced technologies such as AI and unmanned vehicles to simultaneously strengthen defense capabilities and revitalize the economy. [1] [2]