Canada advances Defence Industrial Strategy to strengthen security, sovereignty and prosperity
Press Release
March 19, 2026 – Waterloo, Ontario
Today, the Honourable David J. McGuinty, Minister of National Defence, on behalf of the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced that the National Research Council of Canada (NRC) is investing over $900 million, through Canada’s Defence Industrial Strategy, in a long-term plan to support national prosperity and build a resilient domestic defence economy. Through the strategy, the Government of Canada is accelerating the development of defence and dual-use technologies to meet Canada’s defence needs and build a globally competitive Canadian defence sector.
While at the University of Waterloo today, Minister McGuinty highlighted the direct funding to support the development and commercialization of quantum technologies.
Quantum technology will unlock future capabilities for the Canadian Armed Forces and create countless high-paying jobs here in Canada.
Quantum computing will break codes, integrate with advanced AI and push material sciences further than what can be achieved using classical computers. Quantum computers will reshape the battlespace, putting compute power on the front lines with firepower by, among other things, using uncrewed systems and quantum encryption, simulating molecular interactions and complex systems, and rapidly developing advanced warfighting materials like batteries and warheads.
Quantum communications will enable covert communications, anti-spoofing, and jamming-resistant and secure key distribution, making it safe to talk across battlefields and continents and through space-enabled communications.
Quantum sensors can detect traces of electric and magnetic fields, gravitational variations, vibrations, or motions at levels unachieved by classical systems. Simply put, this means seeing the adversary before they see you.
The Government of Canada is pursuing a long-term, whole-of-government approach to strengthening the defence industrial base as a pillar of national security, economic resilience and prosperity.
Quotes
“Canada’s security depends on our ability to innovate at home. Through the Defence Industrial Strategy, we are strengthening our sovereign capabilities and supporting Canadian companies in the development of next-generation aerospace, drone, quantum and biomedical technologies. This investment will help advance defence and dual-use technologies to equip the Canadian Armed Forces with cutting-edge solutions while reinforcing a resilient, globally competitive defence industrial base.”
The Honourable David J. McGuinty, Minister of National Defence
“The world is becoming more complex, and the global economy is rapidly evolving. Canada’s Defence Industrial Strategy positions our country to lead in emerging fields—like quantum technologies—strengthening our domestic industrial base and enabling Canadian innovators to shape the future of defence. These investments will accelerate cutting-edge dual-use technologies and deliver world-class capabilities for the Canadian Armed Forces, grow Canada’s quantum and defence sectors delivering good jobs for Canadians, and build a more resilient, competitive Canadian economy.”
The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
“For over a century, the National Research Council of Canada has advanced research and innovation that strengthen our nation’s defence and security. Building on the depth of our expertise, extensive partnerships with research institutions, and connections to ambitious Canadian businesses, we remain committed to advancing sovereign defence technologies that enhance security, create prosperity and reinforce Canada’s strategic economic position for the future.”
Mitch Davies, President, National Research Council of Canada
Quick facts
Initial investments under the Defence Industrial Strategy contribute to Canada spending 2% of its gross domestic product (GDP) on defence in 2025–2026.
Increasing investments in core military capabilities, building up Canadian industry and investing in dual-use technologies are putting Canada on a pathway to meet the new North Atlantic Treaty Organization (NATO) Defence Investment Pledge to invest 5% of GDP by 2035.
The Canadian defence industry contributes nearly $10 billion to Canada’s GDP and supports over 81,000 jobs.
The NRC was established by the Government of Canada during the First World War to coordinate and promote scientific research that could contribute to the national war effort. The NRC has evolved into Canada’s leading research and innovation organization, supporting science and technology across a wide range of fields—including aerospace, engineering, life sciences and digital technologies—and leveraging these capabilities for defence priorities.
The National Research Council of Canada’s (NRC) new programs in support of Canada’s Defence Industrial Strategy reinforce its long-standing partnership with the Department of National Defence (DND) and the Canadian Armed Forces. This enduring collaboration represents the single largest client relationship of the NRC today.
Since 2021, the NRC has delivered more than 975 joint projects with DND, advancing aerospace, sensors, marine and biosecurity technologies.
The NRC’s Challenge programs have provided more than $240 million in joint research and development funding since 2018. They have produced 2,600 technologies and tools and nine spin-off companies.
I nailed it yesterday! Ha!
(UW alumna, that's what)