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You are here: Home / cat / Minister Joly Unveils $240M Funding to Boost Canadian SMEs in Defence and Dual-Use Tech

Minister Joly Unveils $240M Funding to Boost Canadian SMEs in Defence and Dual-Use Tech

Dated: January 12, 2026

The National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP) is launching a new initiative, Defence Industry Assist (DI Assist), aimed at providing funding and expert advice to high-potential Canadian small and medium-sized enterprises (SMEs) developing made-in-Canada defence and dual-use technologies. Announced by Minister Mélanie Joly on January 9, 2026, the program is supported by a government investment of $244.2 million starting in 2025–2026. DI Assist seeks to strengthen Canada’s defence innovation ecosystem by supporting collaborative R&D, improving access to procurement pathways, and reinforcing supply chain networks for SMEs.

DI Assist is designed to help Canadian businesses overcome barriers to market entry, commercialize cutting-edge technologies, and enhance their global competitiveness. By fostering innovation within the domestic defence industry, the initiative also contributes to economic growth, the creation of high-quality jobs, and Canada’s efforts to meet its NATO defence spending target of 2 percent. The program aligns with broader government objectives under the Defence Industrial Strategy, which includes $6.6 billion in investments over five years to strengthen domestic supply chains, expand critical resource stockpiles, and support SMEs entering the defence market.

NRC IRAP has a long-standing history of supporting Canadian business innovation for over 75 years. Its network of more than 250 industrial technology advisors (ITAs) offers tailored guidance based on extensive industry experience, helping SMEs maximize their growth potential and innovation impact. In 2024–2025, these ITAs provided advisory services and funding to over 9,100 innovative Canadian SMEs. Through DI Assist, NRC IRAP will work closely with Innovation, Science and Economic Development Canada (ISED), the Department of National Defence, and the newly established Defence Investment Agency to identify priority technology areas for investment and development.

Minister Joly emphasized that DI Assist will empower Canadian companies to scale up, participate in global supply chains, and secure their place in the international defence market. Minister David J. McGuinty highlighted that the initiative leverages Canadian expertise to address global challenges while reinforcing the country’s industrial base. NRC President Mitch Davies underlined the program’s role in developing sovereign defence and dual-use capabilities to build a resilient and competitive Canadian economy. Canadian SMEs interested in participating in DI Assist are encouraged to contact NRC IRAP for guidance and support.

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