Invest Ottawa is unveiling a strategy it hopes will attract $3 billion in investment in the nation's capital region.
Invest Ottawa is committed to making the National Capital Region (NCR) the heartbeat of Canada's defense innovation economy.
At a presentation Tuesday at Ottawa City Hall, Ottawa Mayor Mark Sutcliffe introduced National Defense Innovation Center Strategy for the Canadian Capital Region. The initiative, launched by local economic development agency Invest Ottawa, hopes to attract up to $3 billion in public and private investment in the region's defense innovation sector over the next five years.
“We can achieve disproportionate economic, security and military impact, but it will require a disproportionate amount of investment.”
Sutcliffe said the strategy supports Canada's renewed commitment to defense spending, including its commitment to NATOand said the region is “uniquely positioned” to be a leader in achieving the federal government's goals. Canada promised NATO that it would spend five percent of GDP on defense by 2035.
“We are well positioned to take advantage of this moment,” Sutcliffe said.
Sutcliffe cited more than 330 defense and security firms located in the city, as well as federal agencies such as the Department of National Defence, Defense Research and Development Canada, the RCMP and CSIS. The strategy also states that more than 65 federal laboratories, 130 embassies and 25 NATO attaches are assets in the area.
The bottom line is that NKR's proximity to business and government makes it an ideal place to build a defense technology center.
“We have a combination of assets, resources and expertise in this region as both a global technology hub and a defense hub that doesn't exist anywhere else in the country,” Invest Ottawa President and CEO Sonya Shorey told BetaKit before the announcement: “We can achieve disproportionate economic, safety, security and military impact, but it will require a disproportionate amount of investment.”
The strategy contains 10 goals aimed at promoting the NKR as a center of defense innovation, expanding the region's innovation infrastructure, attracting investment, increasing the workforce and improving procurement and export routes. Some highlights include building government infrastructure such as test facilities and semiconductor manufacturing plants, and scaling up the development and protection of intellectual property (IP) through ElevateIPIntellectual Property of Ontario (IPON) and IP Assist.
Shorey said this “evergreen” strategy will respond to changes in the ecosystem and could create up to 18,000 jobs and $9 billion in GDP, according to an economic assessment by Invest Ottawa.
In its current form, the strategy is only a starting point. It is to be developed and implemented by a task force of leaders from industry, academia, government, hospitals and investors that will be formed within the next 60 days.
Shorey told BetaKit that federal funding for the strategy could come from the Business Development Bank of Canada, Export Development Canada or even regional economic development agencies like FedDev Ontario, all of which she expects will have dedicated funding to meet Canada's NATO spending target. Mayor Sutcliffe told reporters the 2025 federal budget “is not the be-all and end-all” for the initiative.
“If there are announcements that will fit into the budget, great. If they come at another time, that's fine too,” Sutcliffe said.
Interest in defense investment has increased. heating as trade tensions with the United States prompted the Canadian government to strengthen its sovereign and military capabilities. In addition to the obligation to spend five percent of Canada's GDP on defense by 2035, the federal government has changed its approach to procurement and it began encouraging banks and pension funds invest in this sector.
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Right in the middle is Ottawa, home to a defense technology venture capital platform. One9 and new neo-prime defense contractor Dominion Dynamics, which recently received 4 million dollars in pre-seed financing. Also in the city is Kalyan, which recently launched its venture division to help businesses test, validate and sell their defense offerings to the Canadian Armed Forces.
On the panel following the strategy announcement is Michael Nelson, CEO and founder of an Ottawa-based defense technology startup. Tacticleexplained how the Ottawa headquarters opens up opportunities for his company to export and sell products directly to the government. He explained that these connections create demand from general contractors and original equipment manufacturers.
“They're looking for support from the military to help them figure out which companies they should focus on as well,” Nelson said. “I don’t think it’s possible to get that kind of support or create that kind of value anywhere outside of Ottawa-Gatineau.”
Image courtesy of Invest Ottawa via LinkedIn.
