Canada is making a decisive move to strengthen its defence innovation ecosystem—one that places small and medium-sized businesses (SMEs) squarely at the centre of the country’s industrial and security future.
On January 9, 2026, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced a $244.2 million investment in the National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP). Beginning in fiscal year 2025–26, the funding will launch a new initiative—Defence Industry Assist (DI Assist)—designed to help high-potential Canadian SMEs advance made-in-Canada defence and dual-use technologies.
The investment reflects a growing recognition that innovation, resilience, and industrial capacity are now as critical to national defence as traditional military assets. By supporting SMEs that develop technologies with both civilian and defence applications, the Government of Canada is aiming to accelerate innovation, strengthen domestic supply chains, and ensure Canadian companies are better positioned to meet the evolving needs of the Canadian Armed Forces—while competing globally.
Lowering Barriers, Accelerating Growth
At its core, Defence Industry Assist is about unlocking potential. Through a combination of targeted funding and expert advisory support, the program will help innovative SMEs overcome barriers to market entry, navigate complex procurement pathways, and integrate into defence and security supply chains.
By connecting promising companies with opportunities across government and industry, DI Assist is intended to strengthen collaboration within Canada’s defence industrial base while accelerating the commercialization of cutting-edge technologies. The result is a more agile, competitive, and innovative ecosystem capable of responding to both domestic defence priorities and international demand.
“With this investment, our government is responding to the needs and ambitions of Canada’s defence industry. Defence Industry Assist will help Canadian companies scale up, commercialize 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. This is how we ensure Canada is ready to meet its defence commitments while empowering our businesses to lead, compete and prosper,” explained the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.
Innovation as a Pillar of Defence
The launch of DI Assist aligns with Canada’s broader defence and industrial objectives, including strengthening sovereign capabilities and reinforcing the country’s ability to respond to emerging global threats. As defence challenges grow increasingly complex—spanning cyber, space, advanced manufacturing, and artificial intelligence—the role of innovative Canadian companies has never been more important.
The program also supports Canada’s long-term defence investments and the ongoing development of the Defence Industrial Strategy, which aims to expand research and development, reinforce the industrial base, and create new opportunities for Canadian workers and businesses.
“The best way to shape a secure and prosperous future for Canada, is to create it. Defending Canada starts with identifying global challenges and harnessing the innovation and expertise already found across our country to create solutions. Through our Government’s generational investments in defence and the development of Canada’s Defence Industrial Strategy, we are expanding research and development, reinforcing our industrial base, and improving opportunities for Canadian businesses and workers,” stated the Honourable David J. McGuinty, Minister of National Defence.
Driving Economic Growth and Global Competitiveness
Beyond defence readiness, the impact of Defence Industry Assist is expected to ripple across the broader economy. Research and development activities supported through the program will contribute to economic growth, create high-quality Canadian jobs, and help Canada advance toward its NATO commitment to spend 2% of GDP on defence.
The initiative builds on the National Research Council of Canada’s long-standing role as a cornerstone of Canadian innovation—linking research excellence with real-world industrial outcomes.
“For over a century, the National Research Council of Canada has advanced research and innovation that has strengthened our nation’s defence, security and industrial development. Building on the breadth of our research capabilities and deep connections with thousands of ambitious Canadian businesses, we are committed to supporting the development of sovereign defence and dual-use capabilities to build a more resilient and prosperous Canada that charts its own course in an increasingly complex world,” expressed Mitch Davies, President, National Research Council of Canada.
A Made-in-Canada Advantage
As global competition for advanced defence technologies intensifies, Defence Industry Assist signals Canada’s intent to be not just a buyer—but a builder. By empowering SMEs to scale, innovate, and integrate into global supply chains, the program reinforces Canada’s position as a trusted partner and a source of world-class, homegrown solutions.
In doing so, DI Assist strengthens both Canada’s national security and its economic sovereignty—ensuring that Canadian innovation continues to drive prosperity, resilience, and readiness in an increasingly uncertain world.