The Regional Defense Investment Initiative will be implemented by Regional Development Canada.
The Government of Canada is committing nearly $358 million to strengthen the country's defense supply chain through its new Regional Defense Investment Initiative (RDII).
Eligible businesses include companies that produce dual-use products and services, as well as firms that specialize in the supply of defense products.
Canada's Minister of Artificial Intelligence and Digital Innovation Evan Solomon shared news today from the Downsview Aerospace Innovation and Research Center in Toronto. He said the RDII package will fund Canadian companies to support innovative projects and their integration into domestic and international defense supply chains.
Federal funding for RDII is expected to come in the form of loans or repayable contributions and will be distributed directly by Canada's seven regional development agencies. Solomon, said eligible businesses can now apply for funding through the program. This includes companies producing dual-use products and services, as well as firms specializing in the supply of defense products.
US trade war pushed Canada to strengthen the country's sovereignty and military capabilities. Efforts to do so are already underway, with Canada set to spend two percent of its gross domestic product (GDP) on defense this year, meeting a NATO goal as part of a great leap forward after years of relative underinvestment in the sector.
Earlier this year, Prime Minister Mark Carney promised the country would increase defense spending by more than five percent Country's GDP by 2035.
CONNECTED: #Budget2025 hints at the full scope of the federal government's defense program
Carney's first budget allocated almost $82 billion. over five years to help the country achieve this and “rebuild, rearm and reinvest” in the Canadian Armed Forces. This figure includes nearly $7 billion to build Canada's defense industrial base as part of the upcoming defense industrial strategy.
We're joined by Matthew Lombardi from defense newsletter The Icebreaker. Podcast BetaKit in September to reveal the suddenly explosive growth of Canada's defense sector. He discovered a group of nearly 500 Canadian companies creating critical technologies such as quantum, logistics and telecommunicationsor aerospacefor example, which have a “dual purpose” in the defense sector.
Last month, Dominion Dynamics founder and CEO Elliot Pence told BetaKit that he sees this growth as a “generational opportunity” for Canadian entrepreneurs.
Development…
Artistic image courtesy of Josh Scott of BetaKit.
