Japan is increasingly engaging foreign defense firms to accelerate the modernization of its military capabilities, seeking advanced technology, expertise, and production capacity from overseas to address critical gaps amid rising regional security concerns linked to China. Recent developments highlight a growing trend toward international collaboration, as Tokyo pursues both urgent capability enhancements and longer-term domestic development.
On October 9, Defense Minister Shinjiro Koizumi confirmed that Japan had signed a contract to procure interceptor drones from the Ukrainian startup SkyFall. These drones, belonging to the combat-tested P1-SUN family, are designed to neutralize unmanned aerial systems, including reconnaissance and attack drones. Tokyo has not specified the exact model acquired. This move follows a fast-tracked procurement agreement with Japanese company Terra Drone for its Terra B1 interceptor, which complements Terra Drone’s investments in two Ukrainian drone manufacturers to leverage their military technologies and battlefield experience.
Experts characterize Japan’s approach as a “two-phase” strategy, combining immediate acquisition of foreign systems to fill urgent operational needs with parallel domestic development efforts to create longer-term alternatives. Hirohito Ogi, a senior research fellow and former defense ministry official, noted that some overlap between foreign acquisitions and domestic programs is acceptable to avoid capability shortfalls during the transition. He identified weaknesses in Japan’s indigenous uncrewed attack drones and artificial intelligence-enabled operational support systems, emphasizing that while Japanese firms have technical expertise, they lack combat experience gained on real-world battlefields.
Beyond drone technology, an international joint venture called Edgewing—comprising Japanese, British, and Italian defense firms—is set to establish a design and development center in Aichi prefecture by next year. This facility will contribute to a next-generation fighter program and could employ around 1,000 workers. The establishment of such centers reflects broader changes in Japan’s defense industrial strategy, which historically relied heavily on U.S.-made weapons but is now diversifying its partnerships to include European and other foreign companies.
Japan’s 2026 defense white paper acknowledges challenges within its domestic defense-industrial base, including limited production volumes and withdrawal of companies from the sector. In response, the government is promoting international research and development, licensed production, and adoption of advanced foreign technologies. The Defense Buildup Programme calls for shortened development timelines to rapidly field urgently needed equipment.
Underlying these initiatives is Tokyo’s strategic assessment of a deteriorating security environment, with China’s growing military power identified as the “greatest strategic challenge.” Analysts suggest that deeper collaboration with foreign defense companies can provide Japan with combat-proven technologies more swiftly, distribute costs and expertise for advanced weapon development, and expand production and maintenance capacities—enhancing Japan’s ability to counter the People’s Liberation Army.
Celine Pajon, head of Japan and Indo-Pacific research at the French Institute of International Relations, emphasized in a July study that foreign partnerships could alleviate Japan’s escalating development costs, production bottlenecks, and dependence on U.S. technology. She also noted that European countries represent promising collaborators for joint development and technology sharing, a key factor in enhancing Japan’s strategic autonomy.
Defense correspondent Yoshihiro Inaba highlighted existing gaps in Japan’s capabilities in uncrewed weapons, low-cost missiles, and artificial intelligence systems capable of processing extensive data. Firms such as Anduril, Palantir, and General Atomics are among those assisting Japan to address these shortcomings. The government’s fiscal 2027 defense budget request includes plans to develop and acquire low-cost stand-off missiles, which Inaba suggested could rapidly improve Japan’s long-range strike capabilities while domestic solutions are being developed, all without necessitating significant changes to the Self-Defense Forces’ current equipment. These efforts are seen as critical in light of China’s expanding quantitative and qualitative military advantages, including its growing fleet of advanced surface combatants.