News & Updates

Canada’s new Defence Industrial Strategy (DIS) is not just industrial policy. It is a potential game changer for Canadian defence and dual-use startups who have historically been locked out of our defence industry. Source Canada received an advance copy of a summary of the DIS.

The DIS explicitly reorients defence procurement toward domestic firms, small and mid-sized businesses, and Canadian-controlled intellectual property. For the first time in decades, policy does not just focus on job creation (though it does that). It states the goal of building Canada’s sovereign capabilities to defend itself by leveraging Canadian innovation.

The important question for Source Canada is this: will the DIS make it easier for our startups to find buyers? On balance, the answer is yes.

1. BUILD–PARTNER–BUY

At the centre of the strategy is the new BUILD–PARTNER–BUY framework.

The order is important:

1. BUILD in Canada first
2. PARTNER with trusted allies if necessary
3. BUY off-the-shelf only when required

This is a refreshingly different procurement hierarchy that could directly benefit startups.

In areas designated as sovereign capabilities, new defence