Attendees pass an image of the Bombardier Global 6500 Aircraft at the CANSEC trade show in Ottawa in 2023.Justin Tang/The Canadian Press
Ottawa is spending more than $900-million under its new Defence Industrial Strategy to bolster defence-related research and development in areas such as drones, quantum technologies and biological warfare countermeasures.
The announcement, made in Ottawa on Monday by Industry Minister Mélanie Joly, Defence Minister David McGuinty and Secretary of State for Defence Procurement Stephen Fuhr, further fleshes out commitments the government made in its strategy, which was released in February.
Shortly after its release, industry leaders and analysts praised the strategy, which aims to more than triple Canadian defence-industry revenue, boost defence exports by 50 per cent and create 125,000 jobs over the next decade. Though, many added the government’s success will be judged by its execution and ability to funnel funds to companies effectively, and efficiently.
This initial $900-million investment will be spent by the National Research Council (NRC) through a variety of initiatives. This includes a Drone Innovation Hub, which will be established between Ottawa and Montreal’s Mirabel area and focus on testing drone and counter-drone technologies. Approximately $500-million will go toward the hub, as well as the procurement of a new Bombardier Global 6500 jet to be used for defence research.
A stream to assist Canadian businesses working on products with both defence and civilian applications, will also be developed under the NRC’s Industrial Research Assistance Program. Ms. Joly previously announced this $241-million initiative in January. As part of the $900-million, it’s designed to help small-to-medium-sized businesses in Canada develop defence-related technologies and gain access to Canadian Armed Forces’ testing environments.
Research and development in the field of biomedical countermeasures, such as vaccines or diagnostics, was also included in Monday’s announcement with a funding allotment of $28-million. The NRC launched a two-year Biomedical Countermeasures Initiative at the start of 2026, to develop, test and manufacture diagnostic tools, vaccines and treatments domestically, to defend against biological threats.
According to the Defence Industrial Strategy, funding to establish and expand this sector could also come through Ottawa’s Strategic Response Fund, formerly the Strategic Innovation Fund, and its Life Sciences Fund.
Quantum technologies were also highlighted as a focus for defence-related research and development. The NRC will spend $161-million over five years to advance these technologies in Canada for defence applications. The quantum sector plays a key role in the 10 capabilities Ottawa has outlined as priority spending areas.
In February, the Department of National Defence singled out quantum technologies and uncrewed systems, as priorities for the Defence Innovation Secure Hubs that it first outlined in the fall and is in the process of setting up across the country.
Initial investments made under Canada’s Defence Industrial Strategy this fiscal year will count toward the country’s goal to spend 2 per cent of its GDP on defence. By 2035, the country’s goal is to increase that spending to 5 per cent of GDP in line with a commitment made by NATO members.