Driving Job Creation and Innovation in Canada Through Defence Spending

Canada positioned to lead globally in five emerging technology areas while building on its strengths<br /> April 23, 2018, Ottawa<br /> Canada has a strong and innovative defence industry with over 650 companies that employ more than 60,000 Canadians.<br /> One way the Government of Canada supports this industry is the Industrial and Technological Benefits (ITB)...

Canada positioned to lead globally in five emerging technology areas while building on its strengths

April 23, 2018, Ottawa

Canada has a strong and innovative defence industry with over 650 companies that employ more than 60,000 Canadians.

One way the Government of Canada supports this industry is the Industrial and Technological Benefits (ITB) Policy, which requires that for every dollar it spends on big defence purchases, the winning contractor must put a dollar back into Canada’s economy. In the past 30 years, the ITB Policy has generated investments of $30 billion in Canada’s economy, and generates around 40,000 jobs annually.

Through Canada’s defence policy, Strong Secure, Engaged, defence purchases are being used to unlock billions of dollars in economic benefits and create middle-class jobs. To maximize these opportunities, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, today announced that the government will use the ITB Policy to motivate defence contractors to invest in Key Industrial Capabilities (KIC). These are five areas of Canadian industrial strength in emerging technologies, which have the potential to grow quickly, and 11 established industrial capabilities where Canada is globally competitive or where domestic capacity is essential to national security:

Emerging technologies

  • Advanced materials
  • Artificial intelligence
  • Cyber resilience
  • Remotely piloted systems and autonomous technologies
  • Space systems

Leading competencies and critical industrial services

  • Aerospace systems and components
  • Armour
  • Defence systems integration
  • Electro-optical and infrared systems
  • Ground vehicle solutions
  • In-service support
  • Marine ship-borne mission and platform systems
  • Munitions
  • Shipbuilding, design and engineering services
  • Sonar and acoustic systems
  • Training and simulation

Key Industrial Capabilities align with the government’s Innovation and Skills Plan by supporting the development of skills and fostering innovation in Canada’s defence sector. 

Source: www.canada.ca