Japan needs to step up industrial counterespionage

Industrial espionage that targets dual-use technology presents a severe challenge to governments – as the G7 recognized at its latest leaders’ meeting in Hiroshima last May.

Protecting technology that, by definition, is used in both private and military applications requires a complex regulatory framework. Sensitive information in need of protection is often originally the creation and property of private enterprises, which may not share the same level of awareness and protection against espionage as the government.

This problem of dual-use technology regulation is especially acute in Japan, which not only lacks a centralized agency dedicated to counter industrial espionage but also has a public sentiment environment that is hostile to such institutions.

With both traditional and non-traditional industrial espionage on the rise, Japan needs to enhance its intelligence capability to counter such threats. The Public Security Intelligence Agency (PSIA) is the existing organization that seems most suitable for the role and its capabilities need to be reinforced.

Why PSIA?

There are other Japanese government agencies that have dealt with industrial counterespionage before, notably the National Police Agency (NPA) and the Economic Unit of the National Security Secretariat (NSS).

As for the NPA, while it has the capability and manpower for the role, law enforcement and intelligence gathering need to be separated for fear of creating a police state.

If we look at the NSS and its economic unit, their main mandate is coordinating government security policy and they are not necessarily expected to execute individual operations and policies.

NSS is also staffed by government officials on loan from various other agencies. That means