Japan’s Performance and Trajectory in Dual-Use Technologies: 2025 Assessment

Executive Summary

Japan continues to demonstrate significant capabilities in critical dual-use technologies, leveraging its advanced industrial base, robust R&D ecosystem, and a tradition of public-private collaboration. This report assesses Japan’s current performance and trajectory in six dual-use technologies—3d-printing, augmented-reality, automated-design-software, biodegradable-plastics, biomimicry, and edge-computing—with a focus on the contributions and activities of key organisations: AZUL Energy Inc., Autify, EdgeCortix, Mawari, RIKEN Center for Emergent Matter Science and University of Tokyo, and Ricoh.

Japan’s strengths lie in materials science, precision engineering, and the integration of AI and automation into manufacturing and design. However, challenges remain, including a relatively conservative regulatory environment, talent shortages in certain digital domains, and competition from the US, China, and South Korea. Notable government and private sector investments are accelerating progress, especially in edge-computing and sustainable materials.

Over the next five years, Japan is expected to consolidate its position as a global leader in select dual-use technologies, provided it can address key weaknesses and leverage opportunities for international collaboration and export.

Strengths

Advanced Materials Science and Engineering

Japan’s historical excellence in materials science underpins its leadership in biodegradable-plastics and biomimicry. The RIKEN Center for Emergent Matter Science and University of Tokyo continue to pioneer research in advanced polymers, nanomaterials, and bio-inspired materials, with applications ranging from medical devices to aerospace components. Japanese firms, such as Ricoh, are integrating these materials into commercial and industrial products, reinforcing Japan’s reputation for quality and reliability.

Integration of AI and Automation

Japanese organisations such as Autify and EdgeCortix are at the forefront of integrating artificial intelligence (AI) into automated-design-software and edge-computing solutions. Autify’s automated testing platforms and EdgeCortix’s AI accelerators for edge devices exemplify Japan’s ability to bridge software and hardware innovation, with direct implications for both civilian and defense applications.

Precision Manufacturing and 3D Printing

Japan’s manufacturing sector is renowned for its precision and quality control, which translates effectively into 3d-printing. Companies like Ricoh have invested heavily in additive manufacturing for prototyping, aerospace, and healthcare, leveraging their expertise in imaging and materials. The ability to produce high-quality, complex parts rapidly is a significant dual-use asset.

Robust Innovation Ecosystem

The collaboration between academia, government, and industry is a hallmark of Japan’s innovation landscape. Institutions like the RIKEN Center for Emergent Matter Science and University of Tokyo work closely with startups and established firms, ensuring a steady pipeline of research breakthroughs and commercial applications.

Sustainability Leadership

With global pressure for environmental responsibility, Japan’s focus on biodegradable-plastics and sustainable manufacturing methods positions it as a leader in green dual-use technologies. AZUL Energy Inc. is notable for its work on sustainable energy storage materials, which have applications across civilian and defense sectors.

Weaknesses

Regulatory and Cultural Conservatism

Japan’s regulatory environment, while stable, is often conservative and slow to adapt to disruptive technologies. This can delay the deployment of innovations in areas such as augmented-reality and automated-design-software, especially when compared to more agile ecosystems in the US or China.

Digital Talent Shortages

Despite progress, Japan faces a shortage of advanced digital talent, particularly in software engineering, AI, and cybersecurity. This talent gap can slow the development and integration of cutting-edge edge-computing and augmented-reality solutions.

Fragmentation and Scale

The dual-use technology sector in Japan is fragmented, with many small and medium-sized enterprises (SMEs) lacking the scale to compete globally or to invest in large-scale R&D. While collaboration exists, it is less fluid than in some Western innovation clusters.

Export Controls and International Perceptions

Japan’s strict export controls and sensitivity around dual-use technologies can limit international collaboration and market access, particularly in defense-related applications. Concerns over technology leakage and geopolitical tensions in East Asia further complicate export and partnership strategies.

Aging Infrastructure

Some segments of Japan’s manufacturing and R&D infrastructure are aging, which can limit the adoption of the latest 3d-printing and edge-computing technologies at scale. Upgrading legacy systems remains a challenge for both public and private sectors.

Notable Programmes & Investments

Government-Led Initiatives

The Japanese government has prioritized dual-use technology development through the Moonshot R&D Program and the Cross-ministerial Strategic Innovation Promotion Program (SIP). These initiatives fund projects in 3d-printing, biodegradable-plastics, and AI-driven automated-design-software, with a focus on both economic growth and national security.

AZUL Energy Inc.

AZUL Energy Inc. is a leader in sustainable energy storage materials, developing advanced catalysts and electrodes for batteries and fuel cells. Their work supports both civilian (EVs, grid storage) and defense (portable power, unmanned systems) applications. Recent investments have focused on scaling production and integrating their materials into next-generation devices.

Autify

Autify provides AI-driven automated-design-software for software testing and quality assurance. Their solutions are increasingly adopted by Japanese defense contractors and manufacturing firms to accelerate product development cycles and improve reliability.

EdgeCortix

EdgeCortix specializes in AI accelerators and software for edge-computing. Their “DYNAX” platform enables real-time AI inference on low-power devices, with dual-use applications in surveillance, robotics, and autonomous systems. The company has secured significant venture funding and government contracts.

Mawari

Mawari is a pioneer in cloud-based augmented-reality content delivery. Their platform enables high-fidelity AR experiences on lightweight devices, with applications in training, maintenance, and simulation for both civilian and defense users.

RIKEN Center for Emergent Matter Science and University of Tokyo

The RIKEN Center for Emergent Matter Science and University of Tokyo lead national research in biomimicry, biodegradable-plastics, and advanced materials. Their work is frequently commercialized through partnerships with industry, supporting both economic and security objectives.

Ricoh

Ricoh is leveraging its expertise in imaging and materials to advance 3d-printing and sustainable materials. The company’s additive manufacturing solutions are used in aerospace, healthcare, and automotive sectors, with a growing focus on defense applications.

Competitive Comparison

United States

The US leads in software-centric dual-use technologies, particularly automated-design-software, augmented-reality, and edge-computing. American firms benefit from a larger talent pool, greater risk tolerance, and more agile regulatory frameworks. However, Japan’s strengths in materials science and precision manufacturing provide a competitive edge in 3d-printing, biodegradable-plastics, and biomimicry.

China

China is rapidly advancing in all six technology areas, supported by massive state investment and a willingness to deploy at scale. Chinese firms are particularly aggressive in 3d-printing, edge-computing, and augmented-reality. Japan maintains a quality and reliability advantage, but risks being outpaced in speed and scale of deployment.

South Korea

South Korea is a strong competitor in edge-computing and automated-design-software, leveraging its advanced semiconductor and electronics industries. Japan retains an edge in materials and sustainable technologies but faces increasing competition in digital domains.

Europe

European countries, particularly Germany and France, are leaders in biodegradable-plastics, biomimicry, and 3d-printing. Japan’s innovation ecosystem is comparable, but European firms benefit from strong EU-level coordination and market integration.

Opportunities for Collaboration / Export

Indo-Pacific Partnerships

Japan can deepen collaboration with Australia, India, and ASEAN countries in 3d-printing, edge-computing, and biodegradable-plastics. These markets value Japanese quality and are seeking alternatives to Chinese and Western suppliers, especially for defense and critical infrastructure.

US-Japan Defense Tech Collaboration

The US-Japan alliance provides a platform for joint development of automated-design-software, edge-computing, and augmented-reality for military applications. Japanese firms can contribute advanced materials and manufacturing, while benefiting from US software and systems integration expertise.

Europe-Japan Green Tech Initiatives

There is strong potential for joint R&D and commercialization of biodegradable-plastics and biomimicry solutions with European partners, leveraging shared sustainability goals and complementary strengths.

Export of Edge AI and AR Solutions

Companies like EdgeCortix and Mawari are well positioned to export AI and AR platforms to emerging markets in Southeast Asia, the Middle East, and Africa, where demand for smart infrastructure and training solutions is growing.

Academic and Industrial Consortia

Japan’s universities and research institutes can expand international consortia for biomimicry and advanced materials, attracting global talent and funding, and accelerating technology transfer.

Risks & Mitigation

Technology Leakage and IP Risks

Given the dual-use nature of these technologies, there is a heightened risk of intellectual property (IP) theft and technology leakage, particularly to strategic competitors. Japan’s export control regime is robust, but enforcement and cybersecurity must be continually strengthened. Mitigation strategies include enhanced vetting of foreign partners, investment in cybersecurity, and participation in multilateral export control regimes.

Geopolitical Tensions

Rising tensions in East Asia, particularly with China and North Korea, increase the risk of supply chain disruptions and targeted cyberattacks. Japan should diversify supply chains, stockpile critical materials, and invest in cyber resilience for dual-use technology firms.

Talent Shortages

The shortage of advanced digital talent poses a long-term risk. Mitigation requires investment in STEM education, incentives for foreign talent, and upskilling programs for existing workers.

Regulatory Bottlenecks

Slow regulatory adaptation can impede innovation and deployment. Japan should streamline approval processes for emerging technologies and create regulatory sandboxes for rapid prototyping and testing.

Aging Infrastructure

To avoid obsolescence, Japan must invest in upgrading manufacturing and R&D infrastructure, particularly for 3d-printing and edge-computing. Public-private partnerships and targeted subsidies can accelerate modernization.

Outlook (5-year)

Consolidation of Leadership in Materials and Manufacturing

Japan is expected to maintain and consolidate its leadership in biodegradable-plastics, biomimicry, and high-precision 3d-printing, driven by continued investment in materials science and sustainable technologies. The RIKEN Center for Emergent Matter Science and University of Tokyo will remain central to these efforts, with increasing commercialization through partnerships with firms like Ricoh and AZUL Energy Inc..

Acceleration in Edge Computing and AI Integration

With the maturation of AI accelerators and real-time inference platforms from EdgeCortix, Japan will play a growing role in the global edge-computing market. Adoption will expand in defense, smart infrastructure, and autonomous systems, supported by government procurement and export opportunities.

Expansion in Augmented Reality and Automated Design

The next five years will see broader deployment of augmented-reality and automated-design-software in both civilian and defense sectors. Mawari and Autify are poised for significant growth, particularly as demand for remote training, simulation, and automated quality assurance increases.

Enhanced International Collaboration

Japan will deepen collaboration with the US, Europe, and Indo-Pacific partners, particularly in green technologies and digital infrastructure. Export of dual-use technologies will grow, provided Japan can navigate export controls and geopolitical sensitivities.

Addressing Structural Weaknesses

To sustain momentum, Japan must address talent shortages, modernize infrastructure, and streamline regulatory processes. Success in these areas will determine the pace at which Japan can scale and export its dual-use technology innovations.

Strategic Positioning

By 2030, Japan is likely to be recognized as a global leader in sustainable dual-use technologies, with a strong position in advanced materials, precision manufacturing, and AI-enabled edge solutions. Continued vigilance against risks—especially in cybersecurity and supply chain resilience—will be essential to maintaining this trajectory.

In summary, Japan’s dual-use technology sector is robust and innovative, with clear strengths in materials, manufacturing, and the integration of AI and automation. Addressing structural weaknesses and leveraging international partnerships will be critical to sustaining leadership and realizing the full potential of these technologies in both civilian and defense domains.