Ottawa-Gatineau looks to become Canada’s ‘Defence Innovation Hub’

The headquarters of the Department of National Defence is pictured in Ottawa on April 3, 2013. (Adrian Wyld / The Canadian Press)

The cities of Ottawa and Gatineau want to make the national capital region “Canada’s Defence Innovation Hub,” as the federal government prepares to boost defence spending over the next 10 years.

Mayor Mark Sutcliffe and Invest Ottawa president and CEO Sonya Shorey unveiled the new five-year strategy at Ottawa City Hall Tuesday morning, with 10 “bold goals and supporting actions designed to unlock Ottawa-Gatineau’s full potential as Canada’s National Defence Innovation Hub.”

“This strategy provides a clear roadmap for how we will act together and strive to unlock $3 billion in public and private investment for the region over the next five years,” said a summary of the D.I. Hub in Ottawa plan.

“Every dollar invested is projected to generate two to three times in total economic output and attract up to double in private and allied capital. The result: more homegrown innovation, commercialization, sovereign capabilities, high-value jobs, investment, and global market growth across defence and dual-use sectors.”

The 10 goals and preliminary actions are:

1. Expand Ottawa-Gatineau defence leadership and deals. The plan includes facilitating deeper multi-sector collaboration across the ecosystem to accelerate research and development, innovation and real-work technology adoption.
2. Leverage technology strengths to modernize and support our forces. “Help firms secure research and development mandates and subcontracts within national recapitalization programs,” and establish the capital region as a “national centre for AI-enabled defence modernization,” said the report.
3. Enable and accelerate multidisciplinary defence innovation. The plan includes “position Ottawa–Gatineau as Canada’s Defence Innovation Hub across AI, quantum, robotics, aerospace, and dual-use tech,” and establishing a defence aviation and propulsion centre of excellence at the Ottawa Airport.
4. Build Sovereign and Secure Infrastructure, Labs, and Capabilities. Expand secure testing and demonstration infrastructure through Area X.O and NRC DIANA sites.
5. Build a Robust Pipeline of Domestic Firms with Sovereign IP
6. Optimize Commercialization Pilots and Procurement Reform
7. Facilitate High-Value Industrial Partnerships and FDI
8. Grow and Attract Defence Capital
9. Help Firms Access and Succeed in Global Markets. The strategy calls for Ottawa-Gatineau to double exports by 2035 and help companies secure NATO and allied certifications with partners.
10. Develop Workforce Capacity and Inclusive Talent Pipelines. The plan includes creating coordinated pathways linking education, training and employment.

The D.I. Hub in Ottawa plan was developed by more than 265 stakeholder consultations and community engagements.

An opportunity to strengthen Canada’s sovereignty

“This is a critical and timely opportunity to strengthen Canada’s sovereignty, grow our economy, and create good jobs here in Ottawa,” Sutcliffe said in a statement. “Our region is home to an unmatched concentration of defence and security expertise, talent, and innovation. Ottawa plays a vital role in our country’s strength and resilience. A strong, thriving national capital is a national asset, and it deserves national investment.“

According to the City of Ottawa, the strategy aims to build on “the areas existing strengths and support new homegrown defence and security capabilities, expand global market opportunities, attract investment and create local jobs.”

Prime Minister Mark Carney has announced the Liberal government will boost defence spending to two per cent of GDP this year and meet NATO’s five per cent defence investment pledge by 2035, which would raise the military budget to $150 billion in 10 years.

Shorey told the event at Ottawa City Hall that with the federal government looking to cut federal public service jobs, the national capital region economy faces risks.

“A national defence innovation hub here provides a powerful counterbalance, creating high-net jobs, sovereign IP, global competition and the capabilities our forces truly need,” Shorey said.

“Marked by tariffs and uncertainty, our deepening ties with the U.K., Europe, NATO and DIANA, we’re positioning Ottawa-Gatineau as the preferred North American landing point for allied and defence aerospace investment.”

Ottawa is home to 330 defence companies, 10,000 employees, four NATO Defence Innovation Accelerator for the North Atlantic Test Centres, including Area X.O. and the Department of National Defence.

Sutcliffe said no new city money will be spent on the strategy.

“The strategy is being driven by Invest Ottawa and by our partners in Gatineau. But there’s no additional investment from the City of Ottawa,” Sutcliffe told reporters.  

The mayor sees it as an opportunity to diversify the city’s economy amidst looming public service cuts.

“One of the risks and threats that Ottawa faces right now is that we are dependent on federal government employment and have been for generations. We know that it’s likely that there is going to be a reduction in the number of people working for the federal public service in the years ahead. We have to work on a number of different fronts to diversifying our local economy,” Sutcliffe said.

“This is a historic opportunity. At the same time, as we might face the risk of federal government job reductions to see job growth in another sector of our local economy, and that’s defence innovation.”

Shorey said one area where the city could capitalize on is technology areas.

“They would include drones and counter drones. Autonomy semiconductor next generation networks,” Shorey said.

“These are anchored technologies and the bedrock in which our tech sector is built, where we have decades of deep expertise that are incomparable here in Canada.”

With files from CTV News Ottawa’s Leah Larocque