Transfer of dual-use technology from Japan through reciprocal equity investments

Abstract

Dual-use technology, technology having commercial and military or defense applications, has been a controversial subject in Japan. While having legal access to Japanese dual-use technology, in practice American access has been restricted to commercial applications. Since 1983 defense technology has been legalized for transfer, but actual transfer of both technologies has been stymied. Reciprocal equity investments in defense industries are being investigated as a suitable mechanism for implementation of transfer, particularly of dual-use technology. The authors explore key issues in this area and offer some preliminary findings.<>