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The Industrial and Technological Benefits Policy

The Industrial and Technological Benefits (ITB) Policy leverages defence and security procurement to create jobs and economic growth. The ITB Policy requires companies awarded defence contracts to do business in Canada equal to the value of their contracts.

ITB Policy objectives

The ITB Policy has five main objectives:

  1. support the long-term sustainability and growth of Canada’s defence sector
  2. support the growth of prime contractors and suppliers in Canada, including small and medium-sized firms in all regions of the country
  3. boost innovation through research and development in Canada
  4. increase the export potential of Canadian-based firms
  5. identify skills development and training opportunities for Canadians

The ITB Policy applies to most procurements by the Canadian Armed Forces and the Canadian Coast Guard:

Bidders must submit an evaluated Value Proposition, outlining their bids’ economic benefits to Canada.

Key Industrial Capabilities

In May 2018, the ITB Policy identified 16 Key Industrial Capabilities (KICs) to better drive innovation, exports and the growth of firms. These are areas of emerging technologies with strong growth potential, such as:

Other KICs are areas where domestic capacity is essential to national security, such as:

Making KICs part of the Value Proposition encourages industry to invest across the supply chain in these capabilities. It will lead to more opportunities for innovative businesses and research institutions

Western Economic Diversification Canada (WD)'s role in fulfilling the ITB Policy

WD helps support and leverage opportunities created by the ITB Policy. It is part of a strategic network of partners in Canadian defence procurement. WD works with:

This network allows WD to stay informed about:

WD’s ITB team also works directly with other stakeholders, including:

WD also finds relevant trade shows, conferences and other events that foster business development.

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