Minister Joly announces over $240 million to boost defence innovation support for Canadian small and medium-sized businesses developing dual-use technologies
Press Release + Noah Note
January 9, 2026 – Ottawa, Ont. – National Research Council of Canada
Today, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced the Government of Canada is investing $244.2 million in the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) starting in 2025-2026, to launch its Defence Industry Assist initiative (DI Assist).
The Defence Industry Assist program will provide funding and advice to high-potential, innovative Canadian SMEs to advance made-in-Canada defence and dual-use technologies. This investment will support the innovative and collaborative capacity of the Canadian defence industry and address the needs of the Canadian Armed Forces.
By working with industry to reduce barriers to market entry through targeted investments, connecting SMEs to procurement pathways, and strengthening supply chain collaborations, DI Assist will position innovative Canadian businesses to reinforce Canada’s defence priorities and compete globally.
Research and development activities supported through DI Assist will grow our economy, create high-quality Canadian jobs, and will contribute to Canada’s efforts to meet its 2% NATO defence spending target.
Quotes
“With this investment, our government is responding to the needs and ambitions of Canada’s defence industry. Defence Industry Assist will help Canadian companies scale up, commercialize cutting-edge dual-use technologies, and secure their place in global supply chains. By investing in world-class ‘made-in-Canada’ technologies, we are building a more competitive Canadian defence industry and driving the economic growth that Canadians expect. This is how we ensure Canada is ready to meet its defence commitments while empowering our businesses to lead, compete and prosper.”
The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
“The best way to shape a secure and prosperous future for Canada, is to create it. Defending Canada starts with identifying global challenges and harnessing the innovation and expertise already found across our country to create solutions. Through our Government’s generational investments in defence and the development of Canada’s Defence Industrial Strategy, we are expanding research and development, reinforcing our industrial base, and improving opportunities for Canadian businesses and workers.”
The Honourable David J. McGuinty, Minister of National Defence
“For over a century, the National Research Council of Canada has advanced research and innovation that has strengthened our nation’s defence, security and industrial development. Building on the breadth of our research capabilities and deep connections with thousands of ambitious Canadian businesses, we are committed to supporting the development of sovereign defence and dual-use capabilities to build a more resilient and prosperous Canada that charts its own course in an increasingly complex world.”
Mitch Davies, President, National Research Council of Canada
Quick facts
As announced in Budget 2025, the Government of Canada has put into action initial investments to support Canada's defence industrial base and is allocating $6.6 billion over 5 years on a cash basis, starting in 2025-2026 under the forthcoming Defence Industrial Strategy.
These initial investments will drive research and innovation, strengthen domestic supply chains, grow critical resource stockpiles, and improve access to funds for Canadian small and medium-sized businesses wanting to grow in the defence market.
NRC IRAP has supported Canadian business innovation for more than 75 years. It is recognized as Canada’s leading innovation assistance program for SMEs, offering advice, connections and funding to help them increase their innovation capacity and take their ideas to market.
NRC IRAP has deep connections with thousands of innovative businesses across Canada and is uniquely positioned to advance the readiness of SMEs to support Canada’s defence needs and build a stronger defence industrial base in Canada.
A key advantage of this initiative is its delivery through NRC IRAP’s industrial technology advisors (ITAs).
ITAs are hired to work for NRC IRAP after having held senior positions in industry with demonstrated accomplishments in technology and business, allowing them to offer unique insight and develop effective relationships with founders and executives.
Through an analysis of the growth capacity and constraints of an SME, ITAs tailor NRC IRAP support and funding for the greatest impact to the SME and to Canada.
In 2024-2025, NRC IRAP’s network of more than 250 ITAs across Canada delivered advisory services and funding to more than 9,100 innovative Canadian SMEs.
NRC IRAP will work closely with Innovation, Science and Economic Development Canada (ISED), Canada’s Department of National Defence and the newly announced Defence Investment Agency to support the identification of priority technology areas for development and investment.
Canadian SMEs looking to explore DI Assist opportunities are encouraged to visit the website or call toll-free at 1-877-994-4727 for more information.
Noah Note: Another day, another fund.
We already knew this was coming from Budget 2025; however, we got the official announcement and such. I apologize if I don't sound excited. More money is always good. The Canadian Defence Industry, especially SMEs, has been surviving a long time off drips of water.
Historically closed off from traditional financial instruments, a pariah to VC, and receiving only limited government support through things like IDEaS—which despite its efforts has become better known for keeping businesses on life support—it sucks to be in the Canadian Defence Industry.
Not anymore, though! Now we get new funds, new VC, new money every week it feels. Maybe that's why I have become a bit dismissive of some of them lately. Defence is the new cool kid in town. It is getting all the hype, for now. I won't argue against more money; certainly, no SME will. Again, drip drops of water.
However, money isn't fixing the core issues, merely providing a lifeline. We still don't have the Defence Industrial Strategy to properly define goals or what "Dual-Use" even is to the Federal Government. What does it include? To what extent? Anything can be dual-use with enough justification; that doesn't mean anything. If you aim too broad, you end up polluting the pool with companies and technologies that don't actually do anything to increase Canada’s security environment.
I am actually harsher on Dual-Use. To me, it needs to have a tangible, definable benefit to National Security in a significant way. It needs to be scrutinized and inherently a bit restrictive to ensure that funding is properly contributing to National Defence.
Some companies I know, especially ones who have popped by me, will no doubt be unhappy at that stance. I'm sorry, clothing is not what I consider Dual-Use here. It is not something that should be in this conversation.
Similarly, funding is great, but we still lack the pipeline for SMEs to be given broader, non-financial support. That can include trial orders, expansion of the sandbox system, and a proper IDEaS pathway to concrete orders. It's something I have been trying to discuss with people a lot. If we aren't supporting SMEs with orders, why do we expect them to get export orders? Why would they stay here in that case in the first place?
These are topics I have been thinking a lot about as we wait for the DIS to drop, hopefully soon. We already know a lot about it and have a good idea of what will be included. While I'm sure there is a lot of debate and back-and-forth happening on what makes the final inclusion, I believe we are at a point where we need it sooner rather than later.
Certainly, it will help quantify and explain where these funds will go and the purposes behind them. Although, I'm hopeful we're closing in on it.
I agree entirely. Money from our Defense budget should not be going to companies producing products not intended or suitable to our Defense. Period.
When I read this, I see the usual verbage. I remain utterly skeptical this will be anything other than just another feeding frenzy at the taxpayer trough while our military continues to languish and libetals get rich.