2018 Annual Report

Overview

1. Historical Perspective of the ITB Policy
   • ITB Portfolio, 1986 - 2016
   • Economic Impact, 2012-2016
     • Jobs & GDP
     • Innovation
     • Scaling up small and medium-sized enterprises (SMEs)^{Footnote *}
2. New ITB Obligations in 2017
3. UpcomingOpportunities in 2017 and Beyond
   • Enhancements to the ITB Policy

To date^{Footnote *}, the ITB Policy has resulted in investment obligations of close to $44B in the Canadian economy

Figure 1: Since 1986, 144 projects have leveraged a total of $43.8 billion in economic obligations

Footnote *

ITB investments to date are from the period 1986 to 2016; ITB portfolio includes projects awarded under the IRB Policy (1986-2014) and ITB Policy (2014-2016)

Return to footnote * referrer

Source: ITB investments administrative database (IRB Policy (1986-2014), ITB Policy (2014-2016)), 2018; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied

The ITB Policy has contributed^{Footnote *} $4.6B of GDP annually, and created or maintained 46,000 jobs annually during the period of 2012-2016 in the Canadian economy

Figure 2: Economic Impact of the ITB Policy, 2012-2016

Footnote *

ITB investments include new economic activities arising from Canadian operations, Canadian suppliers, post-secondary and research institutions, technology transfers, collaborative innovation, venture capital and SME innovation expressed in total Canadian Content Value credited before multipliers are applied. 2012-2016 ITB investment values are based on identified investments. A five year annual average is used to reflect multi-year transaction periods. All totals are in $CAD.

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Source: ITB investments administrative database (IRB Policy (2012-2014), ITB Policy (2014-2016)), 2018; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied

Over 700 companies across all regions of the country benefited from more than $17B of ITB business investments from 2012 to 2016

Close to $190M was invested in collaborative innovation, skills development, and technology transfer from 2012 to 2016

• Investments in academic institutions support both innovation and skills development functions
• Collaborative innovation, skills development, and technology transfer activities occurred in every region in Canada

Figure 3: ITB Collaborative Innovation and Skills Development Investments % Share, 2012-2016

More than 45 academic and research organizations benefited from ITB innovation and skills development investments from 2012 to 2016

Figure 4: Academic and research organizations benefiting from ITB innovation and skills development investments, 2012-2016

Footnote *

CCRM: Centre for Commercialization of Regenerative Medicine; CWA: Canadian Welding Association Foundation; UOIT: University of Ontario Institute of Technology; CEMI: Centre for Excellence in Mining Innovation ; CIMHVR: Canadian Institute for Military and Veteran Health Research; CRC: Communications Research Center; NRC: National Research Council; DRDC: Defence Research and Development Canada; NSCC: Nova Scotia Community College

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Source: ITB investments administrative database (IRB Policy (2012-2014), ITB Policy (2014-2016)), 2018; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied

The ITB Policy supported the scaling up of over 400 SMEs in the same period

• SMEs received over $2 billion in investments between 2012 and 2016
• Close to $15 million of innovation investments went to SMEs from 2012 to 2016

Sample of Canadian SMEs benefiting from ITB innovation investments:

• Edgewater Computer Systems
• Solace Power
• QRA Consulting Inc
• Bluedrop
• Contextere
• Gastops
• Metamaterial Technologies Inc (MTI)

Success stories of recent ITB investments

Academic Innovation – University of New Brunswick

Innovation investments will enable a Canadian university to evolve their cybersecurity expertise through its Information Security Centre of Excellence (ISCX)

SME Innovation - Gastops

Innovation investments will enable a Canadian SME to develop and test a chip analysis process for aerospace industry engine programs

Skills Development – Nova Scotia Community College

Skills investments will enable African Nova Scotians to study welding under the new Pathways to Shipbuilding Program and secure careers at the Halifax and Vancouver Shipyards building the Royal Canadian Navy’s future fleet

Defence Contracts awarded in 2017 have resulted in…

• 7 new projects^{Footnote *} in the ITB portfolio
• $1.8 billion of additional ITB obligations^{Footnote **}
  • Over half of the work relates directly to the projects
• Close to $300 million in potential opportunities for SMEs^{Footnote **}
• $88 million of innovation activity in progress
• Significant export opportunities from a Canadian base

Enhancements to the ITB Policy will continue to support innovation and skills development in Canada

Key Industrial Capabilities (KICs)

16 KICs (in emerging technologies or established Canadian strengths) represent a strategic approach to leveraging economic benefits through defence procurements with a continued focus on innovation, supplier development, exports, and economic growth

Skills Development and Training

Skills Development and Training has been added as a fifth Value Proposition pillar to encourage bidders to identify skills development and training opportunities for Canadians

Gender and Diversity Plans

Gender and Diversity Plans require bidders to describe their approaches to achieving gender balance and increasing diversity within their Canadian corporate structures and with Canadian partners