The Defense Ministry plans to introduce a new contract system to support startups in developing unmanned aerial vehicles (UAVs) and other products to tap their advanced technologies.

Under the system, the ministry will examine participating companies at each stage, such as development planning and demonstration, making payments for necessary expenses at each step, according to an announcement Friday. It will publicly solicit applications from early October.

By facilitating development activities of startups, which tend to face financial constraints, the ministry hopes that it will be able to better incorporate innovative technologies and ideas into defense equipment.

The ministry will use the Small Business Innovation Research contract system, already adopted by the internal affairs and health ministries.

The Defense Ministry has set three targets of research and development — low-cost UAVs using domestically made components to the greatest extent possible, boosting operational efficiency and labor-saving in supply warehouses, and reducing aircraft noise to improve the working environment at bases.

Under the SBIR system, contracts will be signed with multiple companies simultaneously, with expenses paid according to the progress of submitted plans.

During the screening process, the ministry will narrow down candidates for final deals by picking those that better meet its requirements.

Conventionally, the development of defense equipment typically takes at least several years, with payments often made only after the completion of the projects.

“Technologies in the civilian field progress very rapidly,” Defense Minister Shinjiro Koizumi told a news conference Friday. “It’s important to incorporate advanced technologies to strengthen defense capabilities.”