The defense production and technology base consists of human, material and technology bases needed for development, production, operation, maintenance and improvement of equipment used for the activities of DODJ and SDFs. In Japan most of the base depends on the defense-related companies, aka defense industries, which include various companies holding special and sophisticated skill and production equipment.

On the other hand, the defense equipment getting higher performance faces decrease of procurement quantity due to the hike of unit cost and/or maintenance cost. While the R&D cost trends upward, the proportion of R&D in the defense budget remains almost same. In such adverse conditions some companies suffer from difficulties of maintaining and transferring skills to the next generation and some have left from defense business.

The defense industries also have to accommodate the change in international business environment such as collaboration in development and company consolidation in EU/USA. The new paradigm of export of defense equipment based on Three Principles for Defense Equipment Transfer is in sight.

In light of these current situations, ‘Strategy on Defense Equipment and Technological Bases’ was formulated in June 2014, in accordance with National Security Strategy and National Defense Program Guidelines, in order to maintain and strengthen defense production and technological bases which is an important and vital factor for building up defense capability.

The strategy above shows the objective and significance of the defense production and technology base. It also describes the following points: the construction of the long-term partnership between government and private; basic point of view for promotion of international competitiveness; the procurement decision making among indigenous development, internationally cooperative development and/or production, and import; the improvement of contract procedure; the policy for R&D; the policy to maintain and strengthen the production and technology base, e.g. the equipment and technical cooperation; the current status and perspective of defense equipment in categorized manner.