How to Position Dual-Use and Defence Technologies for Canadian Defence Funding

How to Position Dual-Use and Defence Technologies for Canadian Defence Funding

Canadian defence funding now supports much more than tanks, ships, or weapons systems. Today, programs like the Regional Economic Growth through Innovation (REGI) Defence and Security Stream fund dual-use technologies—products made for commercial markets that also solve defence or security problems. If your technology is in AI, cybersecurity, sensors, space, advanced manufacturing, or logistics, how you present it can decide if you qualify for defence funding or get screened out early.

Why Positioning Matters in Defence Funding

Defence funders look for more than just strong technology. They focus on strategic fit. REGI’s Defence and Security Stream and similar programs want to see how your technology strengthens Canadian defence supply chains, reduces foreign dependence, or helps the Canadian Armed Forces (CAF) and allies meet future needs.

What “Dual-Use” Means in Canadian Defence Funding

A dual-use technology has both civilian and defence uses. The REGI Defence and Security Stream recognizes and funds these technologies, even if your main customers are commercial.

To be eligible, your project must address a demand or opportunity within defence supply chains, including dual-use applications or a move into defence markets.

Examples of strong dual-use alignment:

• AI software for logistics, adapted for military supply chain resilience
• Cybersecurity platforms that protect both critical infrastructure and defence networks
• Sensors for mining, energy, or transportation that also support surveillance or situational awareness
• Advanced materials or manufacturing processes that can be scaled for defence production

You do not need to leave your commercial market behind. The main goal is to clearly explain the defence relevance.

How the REGI Defence and Security Stream Assesses Defence and Dual-Use Projects

The REGI Defence and Security Stream is delivered through Canada’s Regional Development Agencies, such as FedDev Ontario, PrairiesCan, PacifiCan, ACOA, CED, FedNor, and CanNor.

Assessors look for projects that:

• Fill defence supply chain gaps or meet new capability needs
• Fit with Canadian defence priority sectors, including:
  • Artificial intelligence, cybersecurity, and quantum
  • Space and aerospace
  • Sensors and advanced electronics
  • Naval, shipbuilding, or land systems
• Show clear economic benefits in Canada, like job creation and building industrial capacity
• Have a realistic plan to reach defence customers, primes, or integrators

REGI funding is meant to work with other programs. Your project must be different from any active Regional Development Agency file.

Supporting Programs That Strengthen Your Defence Positioning

Most successful defence-funded companies combine REGI with other programs for added support.

NRC IRAP – Defence Industry Assist (DI Assist)

Defence Industry Assist (DI Assist) is offered by the National Research Council’s Industrial Research Assistance Program (NRC IRAP). It helps innovative Canadian SMEs working on defence and dual-use technologies with funding and advice.

Key points:

• Supports applied R&D, development, and pre-commercialization
• Funding amounts depend on the project and are set with an IRAP Industrial Technology Advisor
• Usually structured as non-repayable contributions
• Can often be used together with other federal or regional programs, following their rules

This program is useful if your technology is not yet commercial but is defence-relevant.

Industrial and Technological Benefits (ITB) Policy Support

The Industrial and Technological Benefits (ITB) Policy is important for companies entering defence procurement supply chains. It requires large defence contractors to deliver economic benefits in Canada equal to the contract value.

ITB is not a grant. However, REGI-funded projects that help your company work with ITB-obligated primes can improve your long-term defence sales.

How to Position Your Technology for Defence Funders

When applying to REGI or similar programs, focus on outcomes, not just features.

Strong applications explain:

• Defence use case: Who will use this in a defence setting, and why?
• Supply chain role: How your technology fits into Canadian or allied defence supply chains
• Readiness and scale: How close the technology is to being used or integrated
• Canadian advantage: Why it matters to build this capability in Canada

GrantHub’s eligibility matcher can help you find defence and dual-use funding programs by region and technology area quickly and easily.

Common Mistakes to Avoid

1. Only describing the commercial market
   If you do not clearly state the defence relevance, assessors may overlook your project.

2. Using vague defence terms
   General words like “national security” without a clear use case can hurt your credibility.

3. Ignoring supply chain connections
   REGI prefers projects that link to primes, integrators, or defence buyers—not just stand-alone products.

4. Applying too early
   Very early-stage ideas often do not succeed unless supported by NRC IRAP.

Frequently Asked Questions

Q: Can a company with no defence customers apply for REGI Defence and Security Stream?
Yes. The program supports companies entering or moving into defence markets, including dual-use technologies, as long as there is a real defence application.

Q: Is the REGI Defence and Security Stream only for manufacturers?
No. Software, AI, cybersecurity, sensors, and other technology companies are eligible if their solutions support defence supply chains or capabilities.

Q: Can REGI be combined with NRC IRAP funding?
Often, yes. REGI is designed to work with other government supports, but projects must be separate and follow stacking rules.

Q: Do I need classified contracts to qualify?
No. Early-stage and unclassified technologies are eligible if they address defence priorities.

Q: Is the REGI Defence and Security Stream available across Canada?
Yes. It is delivered through Canada’s Regional Development Agencies, with regional application processes.

Next Steps

Positioning dual-use technology for defence funding is about clarity and alignment. When your application clearly links commercial innovation to defence outcomes, programs like the REGI Defence and Security Stream become much more accessible.

GrantHub tracks hundreds of active defence, innovation, and dual-use funding programs across Canada—see which ones match your technology, region, and business stage.

See also:

• How to stack grants and loans without violating funding rules
• What business expenses are eligible across Canadian grants and loans
• How long do Canadian grant programs take to pay out funds?