How Your Organization Can Benefit
The Industrial and Technological Benefits (ITB) Policy is a powerful tool for driving economic growth, investments and innovation in Canada. Since the establishment of the Policy in 1986, Canada has leveraged billions of dollars in investment, resulting in defence sector growth and spillover benefits to the broader Canadian economy. Prime Contractors on procurements where the ITB Policy applies are obligated to make investments equal to the value of their contract. These investments benefit Canadian companies, post-secondary institutions, and charities/not-for-profit organizations.
"Canadian Company" refers to commercial enterprises incorporated pursuant to the laws of Canada and which have ongoing business activities in Canada. While Canadian Companies can and do act as Prime Contractors, smaller firms can also receive subcontracts from Prime Contractors. To increase opportunities for Canadian firms to integrate into global supply chains, the ITB Policy motivates Prime Contractors to build long-term partnerships with Canadian businesses to develop new products, share intellectual property and bring existing products and services to the global market.
"Post-Secondary Institution" means a higher education institution or other organizational entity in Canada that is eligible to receive funding from at least one of the three federal granting councils (the Social Science and Humanities Research Council, the Natural Science and Engineering Research Council, or the Canadian Institutes of Health Research). The Policy has a number of features that make post-secondary institutions attractive partners for investments by contractors. Contractors receive a five-time credit multiplier when they make a cash contribution to a Post-Secondary Institution for research or the establishment of research chairs. Similarly, Prime Contractors and Eligible Donors may receive credit for investments in consortia, which include post-secondary institutions. Cash contributions to consortia are also eligible for a five-time multiplier.
Charity or Not-For-Profit Organization
“Charity” and “not-for-profit organization” refers to charities registered with the Canada Revenue Agency or not-for-profit organizations incorporated federally under the Canada Not-for-profit Corporations Act or in the province or territory where it operates. Contributions to these organizations could be eligible for credit under the ITB Policy, especially for work related to Skills Development and Training.
What Should I Do Next?
If you are looking to promote your organization and establish partnerships with major defence firms here are some tips you should consider:
- Common to all:
- Be patient! It can take years to build relationships with major firms;
- Determine what industry domain(s) you want to focus on – air, land, marine, cyber;
- Know who the top bidders and contractors are in your target market; visit BuyandSell.gc.ca regularly to keep current of upcoming tenders and industry engagements, and explore the ITB website to better understand the ITB Policy;
- Talk to your Regional Development Agency (RDA) representative and engage with Global Affairs Canada’s Trade Commissioner Service; and,
- Visit the Department of National Defence’s Defence Capabilities Blueprint webpage and browse by Key Industrial Capabilities (KICs) in order to identify projects that fall within your industry domain and match your firm’s capabilities.
- If you are a Canadian Company:
- Register your company online with your target vendors for upcoming tenders;
- Investigate whether your company needs specific credentials or certifications (e.g. controlled goods); and,
- Determine the Canadian Content Value of your product or service. This will be your competitive advantage.
- If you are a Post-Secondary Institution:
- Research Prime Contractors with obligations and determine if their research and development priorities align with your areas of interest;
- Identify the type of R&D activities contractors are looking for, and market your institution as a viable solution and partner;
- Talk to your RDA representative, they can assist you in finding industry partners who require your expertise.