Canada Accelerates Defence Innovation with $900 Million Investment Through National Research Council

Canada’s defence industrial ambitions are entering a new phase. With geopolitical tensions rising and technological competition intensifying, the federal government is moving to reinforce the country’s domestic defence innovation ecosystem—placing research, industry partnerships, and advanced technologies at the heart of its strategy.

On March 9 in Ottawa, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, joined the Honourable David J. McGuinty, Minister of National Defence, and the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), to announce that the National Research Council of Canada (NRC) will invest more than $900 million under Canada’s Defence Industrial Strategy.

The investment signals a major push to accelerate the development of next-generation defence and dual-use technologies while strengthening Canada’s domestic industrial base. The goal is clear: ensure the Canadian Armed Forces have access to cutting-edge capabilities while building a globally competitive defence sector that drives economic growth across the country.

A Strategy for Security and Economic Strength

Canada’s Defence Industrial Strategy is designed to align national security priorities with economic development. By investing in advanced technologies and strengthening partnerships between government, industry, and academia, the strategy aims to expand domestic manufacturing capacity, grow supply chains, and create new opportunities for Canadian businesses.

“The world is becoming more complex, and at the same time, the global economy is shifting. Canada’s Defence Industrial Strategy will strengthen our domestic industrial base, create high-quality jobs across the country and help Canadian companies compete and win globally. The NRC investments announced today will advance cutting-edge dual-use technologies and deliver world-class capabilities for the Canadian Armed Forces. Our government is meeting the moment so Canadians benefit from a stronger, more resilient defence economy,” stated the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.

The strategy reflects a broader shift toward building sovereign technological capabilities in Canada while ensuring domestic companies remain competitive in global defence markets.

Expanding Canada’s Defence Innovation Ecosystem

At the centre of the announcement is the National Research Council of Canada, which will expand its long-standing collaboration with the Department of National Defence and industry partners to accelerate the development of critical technologies.

Through the $900-million investment, the NRC will pursue several key initiatives:

• Expanding domestic capacity in drone and aerospace technologies, including the creation of a new Drone Innovation Hub.
• Acquiring a Canadian-built Bombardier Global 6500 aircraft, which will serve as a test platform for defence-related technology development in partnership with industry and academia.
• Supporting Canadian companies developing dual-use technologies through Defence Industry Assist (DI Assist), a new stream within the NRC’s Industrial Research Assistance Program.
• Accelerating research into biomedical countermeasures, helping address emerging defence and security threats.
• Strengthening Canada’s leadership in quantum technologies for defence applications.

Together, these initiatives aim to translate research breakthroughs into deployable capabilities for the Canadian Armed Forces while opening new markets for Canadian companies.

Innovation as a Sovereign Capability

For Canada’s defence leadership, technological innovation is increasingly viewed as a core element of national sovereignty. Developing advanced capabilities domestically ensures Canada can respond to evolving threats while maintaining strategic independence.

“Canada’s security depends on our ability to innovate at home. Through the Defence Industrial Strategy, we are strengthening our sovereign capabilities and supporting Canadian companies in the development of next-generation aerospace, drone, quantum and biomedical technologies. This investment will help to advance defence and dual-use technologies to equip the Canadian Armed Forces with cutting-edge solutions while reinforcing a resilient, globally competitive defence industrial base,” remarked the Honourable David J. McGuinty, Minister of National Defence.

By accelerating collaboration between government research institutions, industry partners, and academic institutions, the strategy aims to shorten the path from research laboratory to operational capability.

From Innovation to Operational Capability

The initiative also aligns with the government’s broader defence procurement reforms, including efforts to accelerate the delivery of advanced technologies to Canadian forces.

Secretary of State (Defence Procurement) Stephen Fuhr emphasized the importance of moving innovations more quickly into operational use:

“Today’s investments will give Canadian industry the opportunity to deliver for the Canadian Armed Forces by innovating, competing and creating good-paying jobs for Canadians. Together with the Defence Investment Agency, we will move cutting-edge capabilities into the hands of our forces faster, build a more resilient supply chain and grow Canada’s defence industrial base.”

By linking innovation funding with procurement pathways, the government hopes to reduce barriers that often prevent emerging technologies from reaching operational deployment.

Building on a Century of Canadian Innovation

For the National Research Council of Canada, the investment builds on more than a century of supporting national defence and technological development.

“For over a century, the National Research Council of Canada has advanced research and innovation that strengthen our nation’s defence and security. Building on the depth of our expertise, extensive partnerships with research institutions, and connections to ambitious Canadian businesses, we remain committed to advancing sovereign defence technologies that enhance security, create prosperity and reinforce Canada’s strategic economic position for the future,” said Mitch Davies, President, National Research Council of Canada.

By expanding collaboration with industry and academia, the NRC aims to help Canadian companies bring emerging technologies to market while strengthening Canada’s long-term industrial competitiveness.

A Whole-of-Government Approach

The announcement reflects a broader whole-of-government effort to reinforce the foundations of Canada’s defence industrial base.

By aligning defence investments with economic development priorities, the strategy aims to generate high-quality jobs, strengthen domestic supply chains, and position Canada as a trusted technology partner for its allies.

In an increasingly contested technological landscape, the government’s message is clear: Canada’s security, prosperity, and sovereignty are increasingly tied to its ability to innovate at home.