Canada has invested $4.495 million to strengthen its defence industrial ecosystem, marking a strategic move to enhance national security, economic resilience, and the global competitiveness of small and medium-sized enterprises (SMEs).
Speaking at Aéro Montréal’s 2026 International Aerospace Innovation Forum, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for CED stated that the funding will support Quebec-based businesses seeking to integrate into or expand within domestic and international defence supply chains, reinforcing the country’s long-term industrial capacity.
The investment will be distributed among Aéro Montréal, Propulsion Québec, and Sous-traitance industrielle Québec (STIQ) to provide coordinated services aimed at preparing SMEs for the complex requirements of the defence sector. Of the total, $1.995 million has been allocated to STIQ to support manufacturing firms in meeting defence standards, while $2.5 million will be shared by Aéro Montréal and Propulsion Québec to assist companies in commercialising their technologies within defence and security markets in Canada and allied countries.
According to Honourable Mélanie Joly, Member of Parliament for Ahuntsic–Cartierville, Minister of Industry and Minister responsible for CED, the government plans to strenghten Canada’s sovereignty, security and prosperity, “while also generating economic spin-offs for industry and communities across Quebec.”
“Investing in SMEs is a key element of our government’s plan aimed at building, protecting and strengthening Canada’s defence industry. By supporting industrial clusters that offer services to Quebec SMEs in the aerospace, manufacturing, and electric and smart transportation sectors, CED is making strategic investments to help increase competency and stimulate innovation.”
Mélanie Joly
Through this investment, the three organisations will work collaboratively to deliver a continuum of services designed to guide SMEs from early-stage readiness to full integration into defence supply chains. This includes improving access to technical expertise, aligning businesses with contractor requirements, and strengthening their capacity to compete in highly regulated defence markets.
Alexis Laprés-Paradis, CEO, Propulsion Québec indicated that, this support will make it possible to provide concrete guidance to businesses to help them access defence and security supply chains, adding, “many businesses in our sector already have high-potential technologies and expertise for these markets.”
He did point out that comprehending this intricate ecosystem and its needs remains the primary obstacle, however, he indicated, “we will step up to the plate to guide SMEs in seizing opportunities and positioning themselves strategically.”
Furthermore, Richard Blanchet, President and CEO of STIQ, explained that the goal of this initiative is to enable Quebec suppliers that want to enter this important market better fulfil contractor criteria, notably by implementing structural projects and providing access to key information. The defence market offers strong growth potential for Quebec businesses, and STIQ, in collaboration with key players in the sector, will be here to support them in this approach, he added.
Defence Investment to Boost Regional Growth and Industrial Capacity
The investment is part of a larger Defence Industrial Strategy, which aims to strengthen industrial capacity while integrating national security objectives with long-term economic growth. Budget 2025 commits $6.6 billion over five years, beginning in 2025-2026, to defence-related companies, with a focus on innovation, supply chain resilience, and greater access to finance for sector enterprises.
According to Mélanie Lussier, President, Aéro Montréal, the Defence Industrial Strategy offers great economic development potential for Quebec businesses, in particular in aerospace.
“Aéro Montréal is delighted with the support announced today at the International Aerospace Innovation Forum, which will enable us to guide our SMEs so they can come out ahead by maximizing their defence and security business opportunities, while also meeting national sovereignty targets.”
Mélanie Lussier
Also, the Regional Defence Investment Initiative (RDII), which was established by the Honourable Mélanie Joly on December 8, 2025, serves as key component of this structure. The initiative is designed to combine changing defence objectives with regional development goals, with Quebec serving as a main emphasis due to its extensive network of aerospace, industrial, and high technology clusters. RDII is expected invest $64.9 million in the province over the next three years, bolstering its key position in Canada’s larger military ecosystem.
Under the Regional Economic Growth through Innovation (REGI) initiative, Canada Economic Development for Quebec Regions (CED) is responsible for implementation. This mechanism is designed to assist businesses and organizations that use innovation to expand operations, increase competitiveness, and develop regional economic ecosystems.
The initiative therefore strengthens sovereignty, reduces external dependence, and builds a resilient, adaptable defence industrial base through SME investment and collaboration.
READ ALSO : Government Targets 150 Undeserved Districts for Free Primary Healthcare Rollout
