Regional Defence Investment Initiative in Atlantic Canada

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ACOA is delivering $38.2 million under this initiative in Atlantic Canada over three years, starting in 2025-26.

The RDII aims to accelerate the integration of businesses and regional ecosystems into domestic and international defence supply chains to increase their industrial and innovation capacity.

Who can apply for RDII funding?

Eligible recipients may include:

• Businesses, mainly small and medium-sized enterprises (SMEs) that are active in or wish to position themselves within the defence industry supply chain, including through dual-use products or services

• Non-profit organizations (including industry associations, business accelerators and incubators, research centres, etc.) that support businesses.
• Indigenous-owned businesses and organizations

• Provincial and municipal governments

What types of activities are eligible?

Business scale-up and productivity for businesses, mainly SMEs, to integrate into defence supply chains, both domestic and international, as well as respond to military procurement opportunities. Eligible activities may include:

• Research and development, technology demonstration, adoption and adaptation, including late-stage product development and technology showcases
• Improvement of productivity or manufacturing capacity, including acquisition of equipment or modernization of facilities
• Commercialization and market expansion
• Certification required to integrate defence supply chains
• Development of military or improvement of dual-use technologies where a clear military application exists

Development of regional innovation ecosystems that help businesses, mainly SMEs, meet Canada’s defence and security needs. Eligible activities may include:

• Business and ecosystem support, including market development and advisory services related to defence supply chains
• Establishment, expansion or modernization of research centres, centres of expertise or specialized facilities for defence-related regional innovation
• Research, analysis and strategy development to strengthen regional readiness for defence procurement and supply-chain participation
• Knowledge and technology transfer to accelerate the adoption and commercialization of dual-use and defence-relevant technologies
• Recruitment of specialized expertise to enhance regional and organizational capacity to meet Canada’s defence and security needs

Eligibility and priorities

Applicants from any sector may be eligible provided that they demonstrate how the project benefits the Canadian Armed Forces, the NATO Alliance or NATO allies, and defence readiness or industrial capability.

Priority may be given to projects demonstrating the strongest impacts in terms of:

• business-led projects that increase Canada’s defence industrial capabilities and capacity
• meeting Canadian defence needs
• integrating Canadian businesses into defence supply chains
• enhancing productivity and competitiveness
• generating strong economic benefits
• strengthening defence-related regional infrastructure
• advancing Indigenous economic inclusion
• aligning with the Buy Canadian Policy

Funding details

• Contributions to businesses are generally repayable
• Contributions to non-profit organizations and Indigenous entities are generally non-repayable

How to apply

Contact your nearest ACOA office to discuss your project and then complete and submit an application following the directions on the How to apply for financial assistance page.

You can consult our Frequently Asked Questions for answers to common questions.

Want to know more?

When large companies win major defence contracts in Canada, they are expected to generate benefits for the Canadian economy by working with domestic suppliers. This creates real opportunities for local businesses. The RDII helps Atlantic Canadian companies get ready to take part in these projects.

Learn about Atlantic Canada and Canada’s Industrial and Technological Benefits policy.