Canada is taking a significant step to bolster its defence industry with a substantial investment aimed at fostering innovation and economic growth. Industry Minister Mélanie Joly announced on Friday that Canada will invest $244.2 million in the National Research Council of Canada’s Industrial Research Assistance Program to launch the Defence Industry Assist (DI Assist) initiative.
This strategic investment is designed to provide funding and advisory support to high-potential, innovative Canadian small and medium-sized enterprises (SMEs). The goal is to advance made-in-Canada defence and dual-use technologies, thereby strengthening the innovative and collaborative capacity of the country’s defence sector. DI Assist will also address the operational needs of the Canadian Armed Forces by reducing barriers to market entry and connecting SMEs to procurement pathways and defence supply chains.
“With this investment, our government is responding to the needs and ambitions of Canada’s defence industry,” Joly stated. “Defence Industry Assist will help Canadian companies scale up, commercialise cutting-edge dual-use technologies, and secure their place in global supply chains. By investing in world-class ‘made-in-Canada’ technologies, we are building a more competitive Canadian defence industry and driving the economic growth that Canadians expect.”
The initiative is expected to position Canadian firms to support national defence priorities and compete in global markets. Research and development supported under DI Assist aims to spur economic growth, create high-quality jobs, and contribute to Canada’s efforts to meet NATO’s benchmark of spending 2% of GDP on defence.
Defence Minister David J. McGuinty highlighted that the initiative aligns with the government’s broader effort to strengthen Canada’s industrial base through expanded research and development and increased opportunities for Canadian businesses and workers. As outlined in Budget 2025, the government has begun implementing initial investments under a forthcoming Defence Industrial Strategy, allocating $6.6 billion over five years on a cash basis starting in 2025-26 to support Canada’s defence industrial base.
This investment underscores Canada’s commitment to fostering a robust and innovative defence sector. By supporting SMEs in developing and commercialising dual-use technologies, the DI Assist initiative is poised to enhance Canada’s defence capabilities, drive economic growth, and solidify the country’s position in the global defence market.