The Defence Industrial Strategy—aimed as it is at driving innovation, high-wage, high-skill employment and ultimately boosting productivity—is key to unlocking the economic potential of Canada’s massive defence funding increases over the next decade.
The most immediate challenge will be to ensure that the defence acquisitions currently in the pipeline aren’t ground to a halt as the government works its way through the thicket of hurdles.
Imagine a sector of the Canadian economy that is not that large in the grand scheme of things, but that is very strong in all the determinants of innovation and productivity. We have it.
The least Canada could do to contribute to collective security is step up in a meaningful way and help NATO meet its industrial production goals.
The international security environment has changed with the Russian invasion of Ukraine.
Unless we take the initiative, Canada’s decreasing relevance in Washington will result in growing headwinds for binational Canada-U.S. defence trade.
