The federal government is injecting $900 million into the National Research Council of Canada (NRC) to jumpstart a drone innovation hub and launch a defence-focused stream under its Industrial Research Assistance Program (IRAP).
Industry minister Mélanie Joly and defence minister David McGuinty announced the commitment, which is part of the recently unveiled $6.6-billion Defence Industrial Strategy (DIS), on Monday while surrounded by drones, planes, and helicopters inside the NRC Research Center at Ottawa’s airport.
“When DND and the CAF need a technical solution that doesn’t yet exist, we count on the NRC to help build it, and to find it.”
Alongside the Department of National Defence (DND) and industry partners, the NRC is committing $500 million of this funding to aerospace and autonomous technologies. One part of this is the creation of the Drone Innovation Hub. Based out of Ottawa and the Montréal area, the hub aims to grow domestic capacity in drone and aerospace technologies.
The government said the hub will enhance drone and counter-drone development and testing capabilities, as well as provide a path for industry to qualify new technologies for drones.
“If you need any other evidence of the need for this research, turn on the newscasts,” McGuinty said in his remarks.
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NRC will also use the aerospace funding to acquire a new Bombardier Global 6500 aircraft that will be used for defence-related technology development with industry and academia. Joly said it will be the first time Canada has had a Canadian-built aircraft to do research at home.
Meanwhile, NRC IRAP’s DI Assist stream will provide $241 million in “funding and advice” to what the government called high-potential, innovative Canadian small to medium enterprises (SMEs). The DI Assist stream is intended to build a domestic base of companies developing dual-use technologies, meaning it has both civilian and military applications. The NRC says it will also inform the DND of emerging technology and manufacturing opportunities.
Other commitments in Monday’s announcement include the NRC investing more than $161 million over five years “to advance Canada’s leadership in quantum technology for defence and security applications.” NRC said this includes funding for industry, academia, and government researchers for quantum sensing, internetworking, and quantum-safe communications. NRC is also investing $28 million to improve its ability to quickly respond to biological threats.
McGuinty said that the Canadian Armed Forces (CAF) has worked alongside the NRC for decades to deliver innovations that give the military “an operational advantage.”
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“Today, [that] means collaborating on autonomous systems, quantum technology, underwater sensors, and preparedness against biological threats,” McGuinty said. “When DND and the CAF need a technical solution that doesn’t yet exist, we count on the NRC to help build it, and to find it.”
Daniel Perry, the director of federal affairs at the Council of Canadian Innovators, told BetaKit that his lobby group is encouraged to see continued support for defence research and innovation, but “as with any major investment, the details will matter.”
“Public funding should help scale Canadian-headquartered firms that develop, manage, and commercialize their technology in Canada, ensuring that the intellectual property, talent, and economic benefits remain anchored here at home,” Perry said.
Joly told reporters that the government wants to make sure Canadian SMEs can get a first contract from DND so that they can invest in their companies. She added that she wants the Business Development Bank of Canada, which recently unveiled a $4-billion defence technology platform, to coordinate with NRC IRAP.
“I want to make sure that, ultimately, we’re not duplicating too much, and that we’re actually very targeted,” Joly said.
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Prime Minister Mark Carney unveiled the DIS last month. The $6.6-billion strategy aims to ensure Canadian industry reaps the rewards of the nearly $82 billion that the feds plan to pour into defence over the next five years.
Among other priorities, the DIS indicates Canada will focus on buying Canadian, investing in areas where the country has existing strength or potential to lead (like in AI and quantum), and helping scale some of the country’s small and medium-sized defence businesses into “national champions.”
At the announcement, Joly pointed to the NRC’s role in building up Canada’s defence industrial capacity from nearly non-existent in 1939 to producing dozens of aircraft and thousands of motor vehicles per week in the middle of the Second World War.
“My point is, we’ve done it before,” Joly said. “We can do it again.”
Feature image courtesy Alex Riehl for BetaKit.