Canadian defense industry calls for industrial policy to drive growth

The Canadian Armed Forces are in an ongoing recapitalization – the largest re-equipping of the forces in decades.


Ottawa, Canada – In an appearance before the House of Commons Standing Committee on Finance's pre-budget consultations, the Canadian Association of Defense and Security Industries (CADSI) urged the government to make a commitment in the 2017 budget to work with industry to develop a Made in Canada defense industrial policy as a new tool to drive innovation-led growth.

"A Made in Canada Defense Industrial Policy would be tailored to Canada's unique security challenges and industrial base capabilities and could be achieved by working with existing funds and programming," said CADSI President Christyn Cianfarani. "Most of our allies have already implemented similar policies in their countries."

A Canadian defense industrial policy requires the federal government to set goals and priorities for defense-sector growth in areas of key industrial capabilities and to better coordinate and connect the existing policies, programs, and instruments scattered across the federal government to achieve those goals. This would require stronger alignment and coherence along the R&D, technological development, commercialization, and procurement phases.

"The potential to leverage defense procurement to realize innovation and growth in every region of Canada is real and achievable," Cianfarani said. "This is an important and rare opportunity given the planned defense acquisitions, from warships to fighter jets to drones, the value of which is large by historical standards."

The Canadian Armed Forces are in an ongoing recapitalization – the largest re-equipping of the forces in decades. This presents a rare window of opportunity to leverage these multi-billion dollar investments to bolster innovation and growth in Canada.

CADSI has presented this idea to the government over the past year, including as part of the Defense Policy Review and the Inclusive Innovation Agenda consultations.

CADSI is the national industry voice of more than 800 Canadian defense and security companies that produce world-class goods, services and technologies made across Canada and sought the world over. The industries contribute to the employment of more than 63,000 Canadians and generate $10 billion in annual revenues, roughly 60% of which come from exports. 

Source: Canadian Association of Defense and Security Industries (CADSI)