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ITBs and Opportunities in Defence

Craig McClelland

Senior Analyst, Aerospace/AI/Cyber

FedDev Ontario

Wednesday, October 25, 2023

WISA Sustainable Aeronautics Summit 2023

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Agenda

  • The Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
  • Ontario’s Defence Sector
  • Industrial and Technological Benefits (ITBs)
  • FedDev Ontario’s ITB Unit

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Federal Economic Development Agency for Southern Ontario�(FedDev Ontario)

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  • One of 7 Regional Development Agencies across Canada.

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  • Created in 2009 to address the key economic challenges faced by southern Ontario.

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  • Offices in Waterloo (HQ), Toronto, Peterborough, and Ottawa.

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DEADLINE TO APPLY FOR THIS ROUND OF CORE FUNDING IS NOV. 7, 2023 AT 8:59 PM EASTERN TIME.

  • FedDev Ontario has recently simplified the application process and will now have three annual intakes for new applications to its core funding.
  • In addition to our core funding, FedDev Ontario also delivers national funding tailored for southern Ontario, such as the Economic Development Initiative to facilitate growth in official language minority communities.
  • See https://feddev-ontario.canada.ca/en/funding-southern-ontario for more information about all our funding opportunities.

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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FedDev Ontario Core Funding

FUNDING FOR ORGANIZATIONS THAT HELP BUSINESSES GROW

Non-repayable contributions from $125,000 up to $10 million per project for not-for-profit and community development organizations that:

    • create a thriving innovation and entrepreneurship environment
    • foster inclusive and sustainable economic growth
    • transform and diversify local economies

FUNDING FOR BUSINESSES�

No-interest, repayable contributions from $125,000 up to $10 million per project for incorporated businesses that:�

    • develop, commercialize or produce innovative products, processes and services
    • improve productivity, capacity and competitiveness
    • scale-up and expand to develop new business opportunities, enter new markets, or reach new customers

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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FedDev Ontario Core Funding [2]

Fall 2023 Intake Priorities:

    • Clean economic growth - projects that support the greening of the economy, that can contribute to emissions reductions, and that create sustainable and green jobs
    • Growth companies - projects that accelerate innovation-led growth
    • Technology - projects led by high-potential firms in cutting-edge sectors (e.g., artificial intelligence, life sciences and digital technologies)
    • Industrial transition - projects that support change in traditional sectors, develop new sectors and ensure there are opportunities for years to come
    • Inclusive growth and regional coverage are cross-cutting investment principles. We welcome projects that create new opportunities for underrepresented groups and promote growth across urban centres and small and rural communities alike.

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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Ontario’s Defence Sector

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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$5.1 billion per year in sales, over half of Canada’s defence industry, employing over 14,000 people

Ontario’s defence industry is home to firms ranging from large multinationals to high-performing SMEs, across the aerospace, marine, land vehicle and IT sectors

Twelve of the top 25 global defence companies have a manufacturing presence in Ontario

Ontario has over 300 companies that currently provide defence products and services – many more are interested and capable

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Southern Ontario is home to over 800 organizations with defence capabilities and expertise. Stakeholders are located throughout the region with clusters in Ottawa, London and the Greater Toronto Area.

Ontario represents 41% of Canada’s employment in the defence industry and contributes $5.1 billion in revenues annually, with more than 50% from exports.

To learn more about southern Ontario’s defence landscape, please reach out to the relevant contact, who can be found on the FedDev Ontario ITB Unit web page �https://feddev-ontario.canada.ca/en/business-services/industrial-and-technological-benefits

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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Industrial and Technological Benefits (ITBs)

Companies awarded a defence and security procurement contract are obligated to undertake business activities in Canada equal to 100 percent of the value of the contract.

The ITB Policy applies to eligible defence procurements over $100 million and is considered when the value exceeds $20 million.

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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ITB Value Proposition (VP)

  • Defence Sector Work to support the long-term sustainability and growth of Canada's aerospace and defence sectors;
  • Canadian Supplier Development to support the growth of prime contractors and suppliers in Canada, including small and medium businesses in all regions of the country;
  • Research and Development (R&D) to enhance innovation in Canada;
  • Exports to increase the export potential and international competitiveness of Canadian-based firms; and
  • Skills Development and Training to fill skills and training gaps within the Canadian economy to support a more innovative Canada.

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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Key Industrial Capabilities (KICs)

EMERGING TECHNOLOGIES:�

  • Advanced Materials
  • Artificial Intelligence
  • Clean Technology
  • Cyber Resilience
  • Remotely-piloted Systems and Autonomous Technologies
  • Space Systems

LEADING COMPETENCIES AND CRITICAL INDUSTRIAL SERVICES:

    • Aerospace Systems and Components
    • Armour
    • Defence Systems Integration
    • Electro-Optical / Infrared (EO/IR) Systems
    • Ground Vehicle Solutions
    • In-Service Support
    • Marine Ship-borne Mission and Platform Systems
    • Munitions
    • Shipbuilding, Design and Engineering Services
    • Sonar and Acoustic Systems
    • Training and Simulation

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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FedDev Ontario’s ITB Unit

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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FedDev’s ITB unit is comprised of professionals experienced in Canadian defence procurement.

Leveraging considerable knowledge of Canada’s defence industry, we work to maintain strong relationships with defence contractors and our large network of regional stakeholders.

Champion: We promote southern Ontario’s capabilities & innovations to global OEMs and guide regional stakeholders on doing business in Canada’s defence space.

Convenor: We bring together defence contractors with regional suppliers and researchers to encourage business opportunities.

We also help guide stakeholders in our region towards funding opportunities with FedDev Ontario and other organizations to support innovation and growth.

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FedDev Ontario’s ITB Team

Ken McConnell

Manager

Robyn Hori

Land and Advanced Materials Lead

Shelby Eyre

Marine and Diversity, Equity & Inclusion Lead

Craig McClelland

Aerospace, Artificial Intelligence, and Cyber Resilience Lead

THE FEDERAL ECONOMIC DEVELOPMENT AGENCY FOR SOUTHERN ONTARIO

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https://feddev-ontario.canada.ca/en/business-services/industrial-and-technological-benefits

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Thank You

  • Craig McClelland
  • craig.mcclelland@feddevontario.gc.ca
  • (519) 404-6429
  • https://feddev-ontario.canada.ca/en/business-services/industrial-and-technological-benefits

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