Industrial and Regional Benefits

Policy Improvements

Phase 1 (now effective)

Phase in 60 percent up-front requirement
30 percent of obligations will need to be identified at time of contract signing, 30 percent one year later, and the remaining 40 percent over the remainder of the contract. Implementing this requirement over a longer period will provide firms with time to identify and negotiate the high-value-added business transactions typical of the Aerospace and Defence sector.
- New Approach
- Frequently Asked Questions
Incentive for the creation of Public-Private Consortia
Encourage Industry-Academia-Research Consortia to develop next-generation technologies and services in aerospace, defence and related sectors. This change will significantly incent business-led innovation activities between global multinationals, Canadian industry, academia and the public sector S&T community.
- New Approach
- Frequently Asked Questions

Improved recognition of the value of Canadian firms' participation in GVC
Encourage original equipment manufacturers (OEM) to add Canadian suppliers to their GVC by crediting Canadian work done on international platforms against Direct IRB requirements. This policy change provides a critical lever to achieve the IRB policy industrial development and export objectives.
- New Approach
- Frequently Asked Questions
Strategic Plans from Prime Contractors with Major IRB Obligations
Strategic plans from prime contractors with major corporate obligations to Canada will be required. The prime will be asked to provide a medium and long-term outlook on its broad corporate plans for Canada. This will encourage more strategic relationships between primes and Canadian companies in terms of investments and subcontracts.
- New Approach
- Frequently Asked Questions

Banking of Industrial and Regional Benefit Transactions (now effective)
Prime contractors will be offered a limited form of banking of IRB transactions both in advance of award, and in the event of over-commitment of IRB transactions. It will allow new business opportunities to be secured when they are most likely to arise.
Enhanced Priority Technology List (now effective)
The new Enhanced Priority Technology List aligns the IRB Policy with the emerging critical technologies of the Canadian military and encourages the development of advanced technologies in the Canadian aerospace and defence sector.
Firm-Level R&D and Commercialization (upcoming)
Encourage primes, to invest in long term, innovation-focused activities in Canadian SMEs. It will establish long term, strategic relationships with primes, leading to increased R&D activities, market-driven technology development and more robust business development approaches.