Canada’s Defence Industrial Strategy to strengthen security, create prosperity, and reinforce strategic autonomy
Press Release
February 26, 2026 – Toronto, Ontario
A strong and competitive defence industry is essential to Canada’s sovereignty, security, and long-term economic prosperity. A key part of this is unlocking opportunities for Canadian innovators to develop and bring new technologies to market. The Government of Canada is committed to helping businesses grow, strengthen their capabilities, and pursue opportunities in the defence sector and related to dual‑use technologies.
Canada’s new Defence Industrial Strategy will strengthen security, create prosperity, and reinforce our nation’s strategic autonomy. This strategy aims to transform our defence industries by incentivising production in Canada and streamlining procurement. This will enable Canada’s aerospace, cyber, and other defence industries to scale up their operations, strengthen their competitiveness at home, and expand their reach, all while creating high-paying careers across our defence supply chains.
As part of this strategy, the Regional Defence Investment Initiative (RDII) is being delivered nationally by Canada’s regional development agencies to support the growth and integration of businesses into domestic and international defence supply chains, and increase their industrial and innovation capacity.
Today, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), announced that a federal investment of up to nearly $7 million has been approved for Creative Destruction Lab (CDL), a global venture accelerator that operates 16 sites globally that helps early‑stage tech companies grow through structured mentorship and expert guidance.
With support from FedDev Ontario and the Department of National Defence, CDL will operate the CDL Defence program, a new initiative that will help companies develop and advance technologies that contribute to Canada’s national security and the future capability requirements of the Canadian Armed Forces and allies. The CDL Defence program will support and accelerate the growth of ventures developing dual‑use technologies by helping them align to the needs of potential real buyers, navigate government pathways, and position themselves for testing and procurement. This will help build the cutting‑edge capabilities Canada needs under the Defence Industrial Strategy, while strengthening the competitiveness of defence and technology sectors.
Through the Defence Industrial Strategy and the strategic investments being made through the RDII, the Government of Canada is aiming to transform Canada’s military and defence supply chain – creating good careers at home, opening new markets for businesses, and equipping the Canadian Armed Forces with the world-class equipment it needs.
Quotes
“Canadian innovators are developing technologies that are essential to our national security and our future economic prosperity. Through the launch of the Defence Industrial Strategy and RDII investments, the Government of Canada is helping build the technologies and capabilities needed to strengthen our sovereignty and support the growth of Canada’s defence sector. Today’s investments in Creative Destruction Lab supports the development of sovereign technologies to meet Canada’s defence needs.”
The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario
“The Defence Industrial Strategy reflects Canada’s commitment to having secure, timely, and reliable access to the capabilities needed to defend our country, protect our sovereignty, and confront current and future threats. It will help position Canada as a leader in defence innovation and prepare us to deal with the increasingly complex global threat environment.”
The Honourable David J. McGuinty, Minister of National Defence
"This investment recognizes that commercializing research is critical to Canada's technology leadership and economic resilience. With the support from FedDev Ontario, CDL Defence provides the structured environment science-based founders need as they navigate from breakthrough research to deployment."
Sonia Sennik, Chief Executive Officer, Creative Destruction Lab
Quick facts
Southern Ontario’s defence sector is an important contributor to the economy. Its 900 firms accounted for 81,000 jobs in 2022. These companies generated $14.2 billion in revenues that same year and contributed $9.6 billion to Canada’s Gross Domestic Product. Southern Ontario's defence ecosystem is dynamic, with strengths in advanced manufacturing, aerospace, automotive technologies, cybersecurity, robotics and AI. The region is well-positioned to seize new defence opportunities and strengthen its role in global supply chains.
Delivered by Canada’s regional development agencies, the Regional Defence Investment Initiative (RDII) is a national $357.7-million investment supporting the growth and integration of businesses into domestic and international defence supply chains. FedDev Ontario is delivering the RDII in southern Ontario and is allocating an additional $106 million from existing resources, totaling nearly $200 million in defence support. Visit the website to apply.
Since launching in 2012 at the University of Toronto’s Rotman School of Management, Creative Destruction Lab has supported more than 7,500 founders representing over 4,000 science‑based companies, and grown into a global network of 16 university‑based sites across Canada, the U.S., Europe, Asia and Australia.