Cyber and software firms qualify too: $135M flowing through IRAP’s defence program

What’s happened.

Melanie Joly, Minister of Industry, announced on October 14 that the National Research Council of Canada Industrial Research Assistance Program, known as NRC IRAP, has put more than $135 million into defence and dual-use technologies since it launched Defence Industry Assist in January 2026. Dual-use means technology that works for both civilian and military customers. The program started with a $241 million commitment. So far it has helped 860 Canadian small and mid-sized companies, backed over 540 innovation projects and supported more than 2,300 jobs. Seventy-nine percent of the companies funded have fewer than 50 employees, about half were incorporated in the last ten years, and nearly a quarter are owned or led by women.

The eligibility list is wider than most software firms assume. Alongside maritime systems, aerospace, drones and space, the program names cybersecurity and communications infrastructure as areas it funds. It also helps companies understand how defence buying works, which is often the real barrier, not the engineering. The money covers early research ideas as well as refining, testing and validating technology that is nearly finished. Under Canada’s Defence Industrial Strategy, the National Research Council is investing over $900 million in total, including quantum technology and defence applications, and Ottawa says the broader strategy is meant to create 125,000 jobs and lift Canada’s defence exports by 50%. NRC IRAP works through more than 250 industrial technology advisors, who funded or advised over 10,800 Canadian companies in 2025-26.