Insider Brief
- Canada’s new Defence Industrial Strategy identifies quantum technology as a strategic sector requiring sovereign control, accelerated commercialization and integration into national defense priorities.
- The plan establishes mechanisms such as BOREALIS, secure innovation hubs and targeted funding streams to connect university research, small and mid-sized firms and military procurement pipelines.
- The strategy also links quantum development to supply chain security, export controls and allied partnerships, signaling tighter protection of sensitive technologies alongside expanded defense market access.
- Photo by Rene Baker on Unsplash.
Quantum technology is taking another step toward the center of Canada’s national security and industrial policy, based on the just-released Defence Industrial Strategy
While the strategy does not outline a standalone quantum roadmap, it does embed quantum within a broader industrial mobilization framework. The strategy identifies quantum as one of several high-value sectors critical to Canada’s defense and economic resilience, alongside artificial intelligence, critical minerals, munitions and space systems. The document positions quantum not simply as an emerging research field but as a capability requiring sovereign control, secure supply chains and accelerated commercialization.
Analysts suggest that with this plan, Ottawa is signaling a shift from supporting laboratory research to building an integrated defense-industrial ecosystem around frontier technologies like quantum.
If quantum is moving from lab to market, the strategy also suggests that these frontier technologies could create economic benefits that move from Canada’s defense industry and into the commercial sphere.
The report states: “Finally, frontier technologies — in which Canada plays a leading role-such as AI and quantum computing — are game-changing on the battlefield and can also drive economic growth and productivity. As shown in the graphic below, implementing this Defence Industrial Strategy and related targets by 2035 will result in an estimated $180 billion total direct investment in defence procurement, $290 billion total investment in defence-related infrastructure, and $125 billion in downstream economic activity – more than half a trillion dollars of overall investment in Canada.”
Quantum as a Sovereign Capability
According to the strategy, stakeholders consistently identified quantum as an area where Canada can lead globally, provided the federal government supports its leading firms and ensures domestic control over intellectual property and production capacity. The document frames quantum within a broader effort to define and strengthen “sovereign capabilities”, areas where Canada must have secure access, supply, maintenance and sustainment.
“In this uncertain world, it is more important than ever that Canada possess the capacity to sustain its own defence and safeguard its own sovereignty,” the report states. “This is especially important when it comes to protecting Canada’s Arctic sovereignty and promoting a secure North, where reliable infrastructure and equipment underpin the Canadian Armed Forces’ and Canadian Coast Guard’s ability to respond to threats and support Northern communities.”
The strategy reports that sovereign capabilities should include not only domestic production but also control over supply chains, intellectual property and in-service support. For quantum technologies, that carries implications beyond research grants. It suggests that future policy will favor domestic manufacturing, Canadian-based scaling and long-term operational control.
Including quantum with AI and critical minerals reflects its perceived role in future defense systems. While the document does not detail specific applications, quantum technologies broadly include secure communications, advanced sensing and computing capabilities that could affect encryption, navigation and battlefield awareness.
The strategy states that research supporting national defense must be responsive and capable of filling critical innovation gaps quickly. It identifies quantum technologies as one of the areas where new programs have been launched or announced to address emerging needs. The emphasis is not only on discovery but on translation — moving technologies from early research stages into deployment-ready systems.
This is important because Canada’s quantum ecosystem has historically been anchored in universities and publicly funded research institutions. The strategy reinforces continued support for investigator-driven science through federal granting councils, however it establishes new mechanisms to connect academic research more directly to defense priorities.
A new Science and Research Defence Advisory Council will bring together leaders from universities, federal departments and research organizations to strengthen collaboration and align research with defense needs. The strategy reports that incubators and test centres will be integrated into national defense innovation pipelines, suggesting tighter coordination between labs and operational requirements.
The Defense Innovation Pipeline
Central to the strategy is BOREALIS, the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science. The document describes BOREALIS as a purpose-built mechanism to accelerate defence research and innovation in frontier technologies including AI, quantum and cybersecurity.
With an initial multiyear investment, BOREALIS is tasked with coordinating research, industry and military stakeholders. It will establish a national network of Defence Innovation Secure Hubs, where security-cleared academic researchers can collaborate with government and industry in controlled environments.
The emphasis on secure hubs signals recognition that quantum research increasingly intersects with national security concerns. Sensitive research areas may require clearance protocols, secure facilities and controlled information sharing. For quantum companies and researchers, participation in defense-linked projects could require navigating stricter compliance and security requirements.
Beyond coordination, the strategy outlines financial mechanisms designed to move technologies up the readiness ladder. It reports that $244 million will be invested in small and mid-sized businesses through a new Defence Industry Assist stream under the National Research Council’s Industrial Research Assistance Program. The goal is to help firms advance defense and dual-use technologies.
The document also notes that, wherever feasible, Canadian Armed Forces ranges, training areas and operational environments will be opened as testbeds for new capabilities. For quantum sensing or communications technologies, such access could provide valuable validation under real-world conditions.
Capital, Procurement and Scale
The strategy extends beyond research support into capital formation and procurement reform. It reports that a new $4 billion Defence Platform at the Business Development Bank of Canada will provide venture capital and advisory services to businesses in the defense sector, with a focus on helping small and mid-sized firms scale and integrate into supply chains.
A new Regional Defence Investment Initiative will also support the growth and integration of predominantly small and mid-sized businesses into domestic and international defense supply chains. The strategy states that innovative procurement pathways will be strengthened or established within flagship programs such as the Defence Innovation Program and Innovative Solutions Canada.
The policymakers behind the strategy indicate that the Canadian government should serve as the first buyer of products and services from innovative domestic firms. For quantum startups, early procurement contracts could serve as anchors for credibility and growth, particularly in a sector where commercial markets remain nascent.
At the same time, the strategy underscores supply chain security and the protection of sensitive technologies. It reports that Canada will continue to apply and refine legislative and policy tools to safeguard critical technologies and research from hostile actors. Frameworks such as national security guidelines for research partnerships are cited as key components of this effort.
That dual emphasis — scaling domestic firms while tightening controls — reflects a broader international trend toward technological sovereignty. For quantum companies operating globally, it suggests a more complex environment in which export controls, foreign investment reviews and research partnerships may face heightened scrutiny.
Integration, Positioning and Implications
The strategy also highlights the importance of strengthening international partnerships and export policies. It reports that Canada seeks to enhance its role in global defense markets, improve export permit processes and integrate more effectively into allied supply chains.
For quantum technologies, this could mean positioning Canadian firms as trusted suppliers within NATO and other allied networks. The document describes efforts to streamline engagement with industry, improve coordination across government departments and proactively share future capability needs with academia and industry.
That partnering is emblematic of the strategy’s emphasis on the Build-Partner-Buy tactic.
According to the report: “Canada cannot afford to outsource its national defence, we must BUILD the domestic capabilities essential to preserving our sovereignty, and develop new capabilities where gaps exist. At the same time, Canada cannot act entirely alone, and collaboration can strengthen security while delivering better value. We know defence platforms and technologies often depend on critical inputs from trusted allies, so if we can’t build it ourselves, we will PARTNER with capable nations to co-develop and co-produce systems. Lastly, in other cases, where circumstances might require it, Canada will also BUY systems off the shelf from abroad. When we do, we’ll make sure it’s under conditions that bolster our sovereign control, while reinforcing, rather than replacing, our long-term domestic capability.”
The strategy concludes that its development was informed by extensive engagement across industry, government and academia. The resulting framework reflects a coordinated approach that links research funding, commercialization support, procurement reform and supply chain security.
Experts note that the strategy seems to mark a shift in tone and structure for Canada’s quantum ecosystem. Quantum is no longer framed solely as a field of scientific excellence. It is treated as a strategic capability requiring domestic control, secure infrastructure and alignment with defense objectives.
For quantum startups, the document suggests new opportunities in defense procurement and venture funding, alongside greater regulatory and security obligations. For universities, it signals deeper integration into defense pipelines and the possibility of working within secure innovation hubs. For foreign partners, it points to a more guarded approach to sensitive research and intellectual property.
