Canada is investing more than CAD$900 million to strengthen its defence sector and accelerate emerging technologies, with a major focus on quantum innovation.
The funding comes through Canada’s Defence Industrial Strategy, officials said on Tuesday. The National Research Council of Canada will manage the long-term investment plan. Meanwhile, the initiative aims to boost domestic capabilities and reduce reliance on foreign systems.
Minister of National Defence David McGuinty announced the funding at the University of Waterloo. He spoke on behalf of Industry Minister Mélanie Joly, who oversees regional economic development in Quebec. Additionally, the government plans to align research, industry and military needs under a single strategy.
Officials said the investment will support both defence and dual-use technologies. These technologies can serve military and civilian purposes. Consequently, the plan aims to create high-paying jobs while improving national security.
Quantum technology sits at the centre of the strategy. It promises to transform computing, communications and sensing capabilities. Furthermore, officials believe it will reshape how modern militaries operate.
Quantum computing could eventually break complex encryption systems. It may also integrate with advanced artificial intelligence systems. In addition, it can simulate molecular and material interactions far beyond classical computing limits.
These capabilities could help develop stronger batteries and advanced warfighting materials. They could also improve the design of next-generation systems. Meanwhile, officials said faster simulations may shorten development timelines across defence projects.
Quantum communications will also play a key role. These systems aim to provide secure, covert communications across long distances. Additionally, they offer protection against spoofing and signal jamming.
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Quantum devices show multiple defence and civilian applications
Officials said quantum encryption could make communications far more secure than current systems. Consequently, this could allow safe communication across battlefields, continents and even space-based networks.
Quantum sensors represent another major focus. These devices can detect extremely small changes in physical environments. For example, they can measure magnetic fields, gravity shifts and vibrations with high precision.
This capability could allow forces to detect threats earlier. It could also improve navigation and surveillance systems. Furthermore, officials said it may provide a decisive advantage in contested environments.
McGuinty said Canada must innovate domestically to maintain its security. He argued that the strategy strengthens sovereign capabilities while supporting Canadian companies. Additionally, he said the plan will help deliver advanced tools to the Canadian Armed Forces.
Joly framed the investment as part of a broader economic shift. She said the global economy is evolving rapidly, requiring new approaches. Meanwhile, she pointed to quantum technology as a key area where Canada can lead.
She added that the strategy will help Canadian innovators compete globally. It will also support job creation and economic resilience. In addition, she said the plan connects research breakthroughs with real-world applications.
National Research Council president Mitch Davies emphasized the organization’s long history. He said the council has supported defence and security innovation for more than a century. Furthermore, he noted its partnerships with universities and businesses across Canada.
Davies said the new funding will expand those collaborations. It will also help develop technologies that strengthen Canada’s strategic position. Consequently, the council aims to translate research into deployable solutions.
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Plan supports aerospace, drone and biomedical technologies
The government described the strategy as a whole-of-government approach. It links national security, economic growth and industrial development. Additionally, officials said it positions Canada to compete in emerging technology sectors.
The plan also supports aerospace, drone and biomedical technologies. These areas align with broader defence and commercial needs. Meanwhile, officials said integrating these sectors will strengthen Canada’s overall innovation ecosystem.
The investment signals a long-term commitment to building a resilient defence economy. It also reflects growing global competition in advanced technologies. Furthermore, officials said early investment will help Canada secure a leadership position in quantum development.
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