The Future of the Aerospace Industry in Japan

Takashi Nishioka Vice Chairman, Nippon Keidanren Chairman, Mitsubishi Heavy Industries, Ltd.

Development of the Boeing 7E7, an aircraft expected to decrease operating costs drastically through the adoption of composite material in its wings, is now under way, and Japanese aircraft and aero-engine manufacturers are expected to participate. Also, domestic research, under the initiative of the Ministry of Economy, Trade and Industry, is in progress toward the development of small jet airliner.

These new projects hold the potential for the Japanese aerospace industry to mark a significant leap, long after the nation withdrew from development of domestic airliner like the YS-11. Today aerospace industries are developing rapidly in Europe, Canada, Brazil and China, and as a strategic business this industry is being embraced and fostered in those countries intensively. In Japan, which is to be a technology-based nation, strategic actions to develop the local aerospace industry are needed because aerospace-related development requires integration of huge, complex systems whose technologies may have enormous ripple effects into other industries.

The aerospace industry is also important in terms of national security. A program to develop the Joint Strike Fighter (JSF), the next-generation fighter, is now under way as a collaborative effort involving the United States, the UK and seven other countries. In developing the JSF, cutting-edge technologies are applied not only in designing the aircraft and engines but even in the development system itself. The partner companies are carrying out development work simultaneously, sharing engineering data over the Internet. Unfortunately Japan is not a member of this program, partly due to the export administration policy of the Japanese government.

Currently the U.S. enjoys a strong lead in defense-related aerospace technology, and technological innovations centered on information technology are making rapid progress. In today's world, it is imperative for Japan to end its technological isolation and begin promoting exchanges on a global level as a way of enhancing its technological capabilities. Doing so will also ultimately boost the nation's security.

Meanwhile in the field of space systems, efforts are continuing in Japan to enhance reliability toward the resumption of the H-IIA rocket launches. Once it has strengthened its competitiveness, Japan is expected to be a significant presence in the global satellite launch market.

While the current business environment is severe, as illustrated by the depressed state of the commercial aircraft market and sluggish growth in the defense budget, development of the domestic aerospace industry, which pursues most advanced technologies and makes influential impact throughout all industrial sectors, is recognized to be essential for the future economic growth in Japan.