Defence is hot right now.
The Canadian government is investing billions of dollars in defence to move beyond traditional contractors. It’s creating opportunities for founders to help address challenges in priority investment areas, including AI, cybersecurity, autonomous systems, aerospace, quantum technologies, and specialized manufacturing.
Regional Development Agencies (RDAs) like Prairies Economic Development Canada (PrairiesCan) help connect small- and medium-sized enterprises (SMEs) to emerging defence opportunities by supporting commercialization, strengthening regional supply chains, and building stronger partnerships across Alberta’s growing defence ecosystem.
PrairiesCan’s Dominic Ross joined us to explore how your innovations could scale beyond traditional markets and open new pathways for growth.
ITB, RDII, and dual-use
Canadian companies can connect to larger defence supply chains through the Industrial and Technological Benefits (ITB) policy, which requires companies that win large Canadian defence contracts to do business in Canada too. The ITB opens doors, but because deals may be top secret, they might not be advertised. The behind-the-scenes process works in mysterious ways.
Delivered by RDAs, the Regional Defence Investment Initiative (RDII) is a federal funding program providing zero- and low-interest loans to help businesses scale up their capacity so they’re better positioned to integrate into Canada’s growing defence supply chains as larger procurement opportunities emerge. The program is geared toward SME projects, with most funding typically falling between $1.5 million and $3 million.
The RDII supports both existing defence sector companies and new businesses entering the sector with technologies, goods, or services that boost innovation and production capacity.
“We are lending money right now to companies you would take for granted in the supply chain,” Ross said.
A major focus is the growing importance of dual-use technologies: innovations with both civilian and defence uses. PrairiesCan is looking to support military first, civilian second.
Who can apply for RDII?
- Prairie-incorporated businesses in the defence supply chain that have operated for at least two years
- Non-profits that support businesses responding to military needs
- Indigenous applicants
Priority is given to projects that:
- target sectors reflecting Canadian military needs and aligning with defence priorities
- enhance productivity and competitiveness
- demonstrate strong regional economic benefits
- advance Indigenous economic inclusion
- strengthen Canadian supply chains
Most funded projects tend to fall into these categories:
- Technology adoption: investing in digitization, automation, or technology integration
- Capacity building: supporting commercialization, certifications, market development, and ecosystem growth
- Productivity improvement: expanding and modernizing facilities and equipment
- Technology commercialization: advancing dual-use technologies
If you’re exploring how your technology, product, or service could fit into this growing landscape, Edmonton Unlimited’s new Defence Industry Liaison, Trevor Frieson, is here to help connect founders and innovators with the right opportunities, partners, and conversations. Reach out to him at [email protected].
