On December 8, 2025, in Montréal, the Government of Canada signaled a major shift in how small- and medium-sized businesses will engage with the nation’s defence and security priorities. The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions (CED), unveiled the Regional Defence Investment Initiative (RDII)—a sweeping national program designed to open the doors of defence supply chains to innovative companies across the country.
Valued at $357.7 million, RDII represents one of the most ambitious modernization efforts aimed at strengthening Canada’s defence industrial base while fueling regional economic development. In Quebec alone, CED will deliver $64.9 million over the next three years, making the province a central hub for industry growth, innovation and diversification.
“Small and medium-sized enterprises are at the core of regional economic development and are key to our government’s plan to build, protect and empower Canadian industry. By providing Canada Economic Development for Quebec Regions with the tools to boost investment in Quebec’s defence industrial capacity and innovation, we will generate long-term economic benefits for businesses, workers and the regional ecosystem,” explained the Honourable Mélanie Joly, Member of Parliament for Ahuntsic-Cartierville, Minister of Industry and Minister responsible for CED.
A Strategic Investment in Sovereignty and Economic Security
As geopolitical tensions sharpen and advanced technologies reshape the character of conflict, Canada is working to rebuild and reinforce its defence capacity. A cornerstone of that effort is ensuring that Canadian businesses—not just the traditional defence primes, but SMEs, startups and dual-use innovators—have a clear pathway into both domestic and international supply chains.
RDII is engineered to close that gap.
The initiative aims to accelerate the integration of regional ecosystems, equipping businesses with the capital, support and competitive edge needed to meet the demands of modern defence procurement. From manufacturers of advanced materials to software innovators to firms with technologies adaptable for national security applications, RDII is poised to help companies pivot, scale and seize new market opportunities.
For many businesses, especially those with dual-use products or services, the initiative unlocks a once-in-a-generation opportunity: the chance to contribute directly to Canada’s national sovereignty and security while charting long-term economic growth.
A Clear Call to Action for Quebec Businesses
With applications now open, CED is inviting Quebec organizations to explore RDII’s eligibility criteria and consider how their capabilities align with national defence needs. For some, the initiative may accelerate a long-planned expansion into defence markets; for others, it may spark a strategic pivot toward high-value work that reinforces both economic resilience and technological leadership.
At its core, RDII represents more than program funding. It is a signal—a commitment to cultivating a stronger, more connected, more innovative defence industrial base that reflects the ingenuity of Canada’s regions and the urgency of the global security environment.
