Canada invests $135 million in defence technology through IRAP program

Minister of Industry Mélanie Joly announced on October 14, 2026, that Canada has invested more than $135 million in defence and dual-use technology projects through the Defence Industry Assist program. The funding is drawn from a $241 million allocation awarded to the National Research Council of Canada Industrial Research Assistance Program in January 2026.

Since its launch in January, the Defence Industry Assist program has provided assistance to 860 Canadian small and medium-sized enterprises. According to a news release from National Research Council Canada, the initiative has financed more than 540 separate innovation projects and supported over 2,300 jobs across the country.

The program focuses primarily on smaller firms across Canada. Data released by the government shows that 79 percent of the businesses receiving financial support have fewer than 50 employees. Additionally, nearly 25 percent of the supported companies are owned or led by women.

Technology Sectors and Capabilities

The initiative targets funding toward 10 key sovereign capacity areas that are defined in Canada's Defence Industrial Strategy. The funded technologies span several distinct sectors, including cybersecurity, communications infrastructure, maritime and underwater systems, aerospace, drones, and space technology.

In addition to direct capital investments, the program offers technical advice and market guidance. It assists participating companies in understanding defence market structures and government procurement procedures. It also supports businesses as they explore early-stage research concepts, as well as when they test, refine, or validate products that are closer to commercial completion.

The federal government stated that investments tied to the broader Defence Industrial Strategy are designed to strengthen domestic supply chains and expand industrial capacity. Official projections indicate that the strategy aims to help create 125,000 jobs and increase Canada's defence exports by 50 percent.

Executive and Ministerial Statements

In a statement accompanying the announcement, NRC President Mitch Davies said small and medium-sized enterprises play a critical role in developing technologies that drive economic growth and national security. Davies noted that the program builds on the council's historical role in defence research to help businesses commercialize new ideas and expand domestic capabilities.

Joly, who also serves as the Minister responsible for Canada Economic Development for Quebec Regions, said the government is investing in domestic expertise to build a more resilient industrial base. She noted that the program uses the National Research Council's national reach and established relationships to deploy funds to domestic companies.

The Defence Industry Assist program will continue to deliver advisory services, industry networks, and targeted funding to Canadian firms using the remaining funds from its $241 million budget.