Canada launches CAD $244.2m DI Assist defence scheme
Canada has committed CAD $244.2 million in new funding for a defence-focused initiative within the National Research Council of Canada's Industrial Research Assistance Programme.
The government said the investment would fund the launch of Defence Industry Assist, known as DI Assist. The initiative will offer advice and funding to high-potential, innovative Canadian small and medium-sized enterprises working on defence and dual-use technologies.
The government framed the move as part of a wider effort to strengthen Canada's defence industrial base and align domestic innovation with the needs of the Canadian Armed Forces.
"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," said The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.
The funding sits alongside a larger set of planned government investments tied to a forthcoming Defence Industrial Strategy. The government has said it is allocating CAD $6.6 billion over five years on a cash basis starting in 2025-2026 under that strategy.
Programmeme scope
DI Assist will focus on Canadian SMEs that the government describes as high-potential and innovative. The initiative will provide direct funding for eligible activities and offer advisory services.
The government said the programme will target defence and dual-use technologies. It also highlighted an intent to connect SMEs with procurement pathways and strengthen supply chain collaboration across the sector.
The announcement linked DI Assist with the government's objective to meet NATO's 2% defence spending target. It also linked the initiative to wider economic aims, including job creation and growth through research and development activity.
Canada's Minister of National Defence positioned the programme in the context of national security and industrial policy.
"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," said The Honourable David J. McGuinty, Minister of National Defence.
Delivery model
The government will deliver DI Assist through NRC IRAP. The programme has operated for more than 75 years and provides advice, connections and funding to SMEs engaged in business innovation.
NRC IRAP relies on a network of industrial technology advisors. The government described these advisors as staff hired after senior roles in industry, with experience across technology and business. It said the advisors assess growth capacity and constraints in an SME and tailor support and funding accordingly.
In 2024-2025, NRC IRAP said its network of more than 250 industrial technology advisors delivered advisory services and funding to more than 9,100 innovative Canadian SMEs.
Coordination plans
The government said NRC IRAP will work with Innovation, Science and Economic Development Canada and the Department of National Defence. It also said NRC IRAP will work with the newly announced Defence Investment Agency.
That collaboration will focus on identifying priority technology areas for development and investment, according to the government.
NRC linked the initiative to domestic industrial resilience and sovereign technology development.
"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," said Mitch Davies, President, National Research Council of Canada.
The government said it will set priority areas and investments under DI Assist in coordination with defence and innovation departments as the broader Defence Industrial Strategy takes shape.