Security, Sovereignty and Scale

Canada’s Defence Industrial Strategy and the New Political Economy of Defence

There are moments when a policy document is merely administrative — and then there are moments when it signals a structural shift.Canada’s new Defence Industrial Strategy (DIS) is the latter.

With $81.8 billion in defence reinvestment and a commitment to grow Canada’s defence industry by more than 240 percent over the next decade, Ottawa is not simply rearming — it is attempting to reorder the relationship between sovereignty and economic growth.

The language is unambiguous: Buy Canadian is not a slogan; it is a North Star .The architecture is equally bold: a new Defence Investment Agency (DIA), a formal Build–Partner–Buy doctrine, sovereign capability prioritization, ITB reform, supply-chain nationalism, Arctic infrastructure, and export expansion .This is not procurement reform. It is industrial strategy under security logic.

‍The Strategic Highlights

1. The Defence Investment Agency: Centralization for Speed and Leverage

‍The DIA consolidates fragmented procurement authority and will apply the new Build–Partner–Buy framework across acquisitions,

Its mandate is dual:

• Re-equip the Canadian Armed Forces
• Drive economic and industrial outcomes

This represents a shift from transactional acquisition to strategic procurement diplomacy.

‍2. Build–Partner–Buy: Hierarchy of Sovereignty

‍Canada will:

BUILD in sovereign capability areas — aerospace, munitions, digital systems, space, sensors, uncrewed systems, in-service support, specialized manufacturing.

PARTNER with trusted allies (EU, UK, Indo-Pacific) where co-development strengthens autonomy.

BUY only when necessary — and under conditions of reinvestment and sovereign IP access.The message to industry is unmistakable:If you want to sell into Canada, you must root into Canada.

‍3. Strategic ITB Reform

‍Industrial and Technological Benefits will move from compliance metrics to strategic outcomes, aligning with sovereign capabilities, innovation, and IP retention .Expect:

• Enhanced multipliers
• Canadian Company Boost
• Strategic Investment Transactions
• Simplified administration
• Export recognition

ITBs are becoming an industrial steering mechanism.

‍4. Defence as Innovation Engine

‍The strategy invests heavily in:

• $244M Defence Industry Assist (NRC-IRAP)
• $4B BDC Defence Platform
• $357.7M Regional Defence Investment Initiative
• BOREALIS innovation hubs
• Drone Innovation Hub

Defence is now positioned as a commercialization accelerant for dual-use technologies.

‍5. Supply Chain Nationalism and Raw Material Strategy

‍Nitrocellulose production by 2029.Critical mineral expansion strategy by 2026.

Steel and aluminum pivot under Strategic Response Fund.This is resilience doctrine translated into industrial policy.

‍Five Strategic Recommendations for Industry Partners

1. Align Explicitly with Sovereign Capability Lists

‍If your offering does not clearly map to Canada’s defined sovereign capability categories, you risk irrelevance.Recommendation:

• Reframe corporate messaging and roadmaps to mirror Canada’s sovereign capability taxonomy.
• Demonstrate domestic value creation and IP anchoring.

2. Treat ITBs as a Strategic Investment Tool, Not a Compliance Cost

‍The reformed ITB policy will reward direct Canadian integration and IP depth.Recommendation:

• Structure long-term Canadian joint ventures, not offset transactions.
• Integrate Canadian SMBs early to maximize multipliers.

3. Prepare for DIA-Driven Speed and Centralized Engagement

‍The DIA will accelerate procurement and reduce duplication.Recommendation:

• Develop government-ready security infrastructure and clearance pathways.
• Anticipate faster bid cycles and compressed decision timelines.

4. Invest in Canadian IP Ownership Structures

‍IP sovereignty is explicitly prioritized.Recommendation:

• Reassess licensing models.
• Consider Canadian subsidiary IP holding strategies.
• Protect long-term sustainment access rights.

5. Embed Arctic and Indigenous Partnership Considerations Early

‍Northern infrastructure and Indigenous participation are core elements .Recommendation:

• Integrate Indigenous procurement strategies.
• Position offerings for dual-use Arctic infrastructure relevance.
• Develop ESG-aligned sovereignty narratives.

Where Samuel Associates’ Successes Become Strategically Relevant to Businesses

‍Over the past several years, Samuel Associates has built a reputation for:

• Translating federal defence strategy into actionable engagement plans
• Structuring compliant government relations frameworks (Canada & U.S.)
• Supporting clients in NATO, EU SAFE, and allied procurement contexts
• Navigating ITB alignment and Canadian supply-chain integration
• Positioning firms in Arctic, aerospace, space, and dual-use sectors

In a strategy environment that prizes alignment, credibility, and domestic anchoring, these competencies become leverage.