This article argues that Canada needs to embrace innovation in defence procurement to meet its NATO commitments and maintain a strong national security posture. It highlights the need for a shift in mindset, away from rigid rules-based procurement towards a more flexible and risk-tolerant approach that encourages collaboration with Canadian industry and leverages emerging technologies.
Barely back in the Oval Office, United States President Donald Trump has mounted the pressure on NATO allies to spend well over two percent of GDP on defense. Canada has yet to meet that minimum threshold—although discourse from our southern neighbor seems to have an effect. Defence Minister Bill Blair suggested in late January that getting to two percent by 2027 is “achievable.” In parallel, our allies and adversaries alike invest in emerging, advanced, and disruptive technologies.
Ukraine constantly tests the use of commercial technology with “old school,” kinetic ones. Battle space innovation only highlights how far behind we are not just in terms of spending, but also in terms of capabilities. Stories of defense spending and defense procurement tell the same tale: rigid structures that create year-long delays, ballooning of costs, and risk aversion. Today, the Department of National Defence is behind on spending the money allocated in Strong, Secure, Engaged. To get to two percent, and get the technology the Canadian Armed Forces needs, we cannot do business as usual. It is high time we innovate. To get there, we ought to change our mindsets. The rules-based approach to procurement—one that imposes competition for its own sake without flexibility in terms of requirements, and prevents more direct operator-industry partnership—is no longer fit for purpose. Canada is rife with startups offering nimble, dual-use technologies that do not get the support they need and deserve from the government. Competitions are too resource heavy for those small enterprises, and the few times they are awarded money and get the opportunity to test and refine their technology for operators, no procurement mechanisms exist for the CAF to obtain the technology it helped develop. This creates a system where ideas stagnate and Canada loses out on critical capabilities. Charlotte Duval-Lantoine is the executive director of Triple Helix, and the vice-president of Ottawa operations at the Canadian Global Affairs Institute. Photograph courtesy of Charlotte Duval-Lantoine As long as our governments continue to have low tolerance for mistakes and refuse to reward outside-the-box thinking, we will fall behind. Fundamental changes are needed, but we are aware that they cannot all happen overnight. But to get started, the government should start rewarding risk taking, and increase its tolerance for mistakes. Instead of imposing stricter rules every time mistakes occur or unintended consequences arise, a principle-based approach to innovation—one that fosters free exchange of ideas, rapid response, and learning as challenges arise—needs to be adopted. There is no need for extensive policy changes to get started; guidance for managers and informal changes to reward structures could be pursued. In parallel, the government has to examine—quickly—how to leverage the current tools it has in order to accelerate processes. Prime Minister Justin Trudeau and Blair, with the support of cabinet, could give guidance to the bureaucracy on how to implement investments. At the bureaucratic level, money and personnel are needed so that the various procurement agencies have the resources necessary to move swiftly and effectively. The shift of mindset ought to come from the top down. Canadian industry is ready to support defence and dual-use related investments, and has even called for the drafting and implementation of a Defence Industrial Strategy—a call DND has responded to with the creation of an assistant deputy minister (Industrial Strategy). Now the first question is: what should it look like? The second question should be: how can we effectively implement it? It will require a change in culture. Canada is blossoming with startups offering new and innovative solutions. Canadian research and development in technologies such as artificial intelligence is world class. None of these attributes that could make Canada a reliable and innovative ally are effectively being leverage for the defence of our country. Fostering Canadian innovation goes beyond patriotism, and recognizing the excellence of which the country is capable. It is also about ensuring our own defence, and protecting our economy. Considering the looming tariff threats, we can no longer lean as much as we do on the U.S. market for military equipment. We owe it to ourselves to have sovereign defence capabilities that meet our needs, and can help contribute to the security of our allies as well. This will take political leadership that garners the strength of its society, and the might of its bureaucracy to achieve success. It is time to recognize that innovating for the defence of the country is investing in and innovating for the country and its citizens. If our leaders want to see Canadians thrive and be well defended, investing in defence is investing in that future
DEFENCE SPENDING INNOVATION PROCUREMENT CANADA NATO TECHNOLOGY INDUSTRY NATIONAL SECURITY
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