ACTIVE PROJECT
Bridging the Innovation Gap
A national study of Canadian startups,
procurement, risk, and defence partnerships
Canada is making significant investments in defence capability, industrial capacity, and emerging technologies. At the same time, many of Canada’s most innovative startups and SMEs remain outside the traditional defence industrial base.
Bridging the Innovation Gap is a national research project examining what makes it difficult for Canadian technology companies to engage with the Department of National Defence and the wider defence ecosystem, and what could make those relationships work better.
This project is supported by funding from the Department of National Defence through the Mobilizing Insights in Defence and Security (MINDS) program Targeted Engagement Grant.
01 — WHAT WE ARE STUDYING
What We Are Studying
The research focuses on the experience of Canadian startups and SMEs as they consider, pursue, or attempt to expand into defence markets.
We are particularly interested in understanding barriers related to:
- defence procurement processes
- identifying and accessing opportunities
- technology testing and validation
- intellectual property and commercialization risk
- security requirements and clearances
- timelines and the cost of pursuing defence opportunities
- navigating DND and the broader defence ecosystem
- partnerships between startups, established defence firms, government, academia, and innovation organizations
- the transition of emerging and dual-use technologies into operational capability
The study is especially interested in the part of the innovation pipeline where promising commercial technologies have demonstrated technical potential but have not yet transitioned into sustained defence adoption.
02 — WHY THIS MATTERS
Why This Matters
Canada’s ability to develop and retain advanced technology is increasingly connected to national security, economic resilience, and sovereignty.
Canadian startups are developing technologies in areas such as artificial intelligence, autonomous systems, quantum technologies, advanced sensing, space, cybersecurity, logistics, and other dual-use fields. Yet companies that are successful in commercial markets can still find the defence market difficult to understand or enter.
This study approaches the problem from the perspective of the companies themselves.
Rather than beginning with the question of how startups can adapt to the existing system, we want to understand where the system creates unnecessary friction for innovative Canadian companies and where changes could produce better outcomes for both industry and defence.
03 — THE RESEARCH
The Research
The project will include approximately 60 qualitative interviews with Canadian startup and SME founders and leaders, complemented by broader engagement with stakeholders across Canada’s innovation and defence ecosystems.
The research will examine both companies that have worked with defence and companies that have considered doing so but encountered barriers, decided not to proceed, or remain uncertain about how to enter the market.
Findings will be synthesized to identify recurring friction points and opportunities for improvement.
Planned knowledge-mobilization outputs include:
- an SME Friction Report
- an Industry-First Roadmap identifying opportunities to improve engagement between innovators and defence
- practical resources for Canadian innovation support organizations
- case studies illustrating pathways into the defence market
- digital tools for exploring research findings
- engagement and discussion with industry, innovation organizations, and defence stakeholders
04 — PARTICIPATE
Participate in the Study
We are currently interested in hearing from founders and senior leaders of Canadian startups and SMEs with perspectives on working with Canada’s defence ecosystem.
You may be relevant to the study if your company:
- currently works with DND, the CAF, defence primes, or other defence organizations
- has attempted to enter the Canadian defence market
- has considered defence applications for its technology but decided not to pursue them
- develops technology with potential dual-use or defence applications
- has encountered procurement, security, IP, validation, financing, or partnership barriers
- has experience that could help explain how Canada can make better use of domestic innovation
Companies do not need to be established defence contractors to participate. Experiences from firms with limited or unsuccessful engagement are particularly useful because understanding why innovative companies remain outside the defence market is an important part of the research.
Interested in participating?
If you are a Canadian founder or company leader interested in contributing to the study, please contact:
Niraj Shukla
nshukla@innovationeast.ca
Please briefly include your company name, your role, the technology or sector in which you work, and your experience or interest in the Canadian defence market.
Further information regarding participation, eligibility, scheduling, and the research process will be provided directly.
Contact About Participating →05 — FUNDING ACKNOWLEDGEMENT
Funding Acknowledgement
This project is supported by funding from the Department of National Defence through the Mobilizing Insights in Defence and Security (MINDS) program Targeted Engagement Grant.
The opinions and findings expressed through this project by individuals external to the Government of Canada do not reflect the opinions or positions of the Government of Canada.