As Japan’s security environment deteriorates, demand and expectations for its defense industry are rising sharply. This surge represents not only an opportunity for growth but also the emergence of a new structural challenge: a shortage of surplus production capacity. How is Japan’s defense sector adapting to this new “Age of Excess Demand,” and what role can government play in supporting it? Drawing on interviews with defense firms and international case studies, this briefing offers concrete policy recommendations for steering Japan’s defense industry from decades of stagnation towards a new phase of expansion.
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From Decline to Surge: The Defense Industry in the Era of Excess Demand (Executive Summary)
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