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Canada Defence
Photo: Melanie Joly/Instagram

Canada to Invest $244.2M in Defence Industry Assist Program to boost homegrown military technology

| @indiablooms | Jan 09, 2026, at 11:48 pm

Ottawa/IBNS: Canada will invest $244.2 million in the National Research Council of Canada’s Industrial Research Assistance Program to launch the Defence Industry Assist initiative, Industry Minister Mélanie Joly announced on Friday.

The programme will provide funding and advisory support to high-potential, innovative Canadian small and medium-sized enterprises to advance made-in-Canada defence and dual-use technologies.

The investment aims to strengthen the innovative and collaborative capacity of Canada’s defence industry while addressing the operational needs of the Canadian Armed Forces.

Through targeted investments, DI Assist will seek to reduce barriers to market entry by connecting SMEs to procurement pathways and strengthening defence supply chains.

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 is intended 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.

In a statement, Joly said, "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, 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," she stated further.

the investment responds to the needs and ambitions of Canada’s defence industry by helping companies scale up, commercialise dual-use technologies and integrate into global supply chains.

Defence Minister David J. McGuinty said 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.

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