2019 Annual Report


Summary

The Industrial and Technological Benefits (ITB) Policy investment progress report 2019 provides a historical perspective of the ITB Policy, economic impact analysis in terms of jobs, gross domestic product (GDP), innovation and skills, scaling up small and medium businesses (SMBs), investments by industry, new ITB obligations in 2018, upcoming opportunities in 2018 and beyond as well as enhancements to the ITB Policy.

1. Investment progress report

To dateFootnote 2, the ITB Policy has resulted in investment obligations of close to $47B in the Canadian economy.

Figure 1: Since 1986, 161 projects have leveraged a total of $47 billion in economic obligations

Pie chart showing breakdown of $47 billion in economic obligations. Long description below.

Source: ITB investments administrative database (IRB Policy (1986-2014), ITB Policy (2014-2018)), 2019; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied.

Text version of Figure 1
Completed:
$36.1B
In progress:
$7.1B
Future work opportunities:
$3.7B

2. Economic impact

The ITB Policy is estimated to contribute close to 46,000 jobsFootnote 3 and more than $4.7B to GDPFootnote 3 annually.

Figure 2: GDP economic impact, annual average, 2013-2017

Pie chart showing breakdown of GDP economic impact. Long description below.

Source: ISED economic modelling based on ITB investments administrative database (IRB Policy (2013-2014), ITB Policy (2014-2017)), 2019; Statistics Canada's Input-Output multiplier (2014), 2019; ITB investments are based on Canadian Content Value credited according to ITB Policy before credit multipliers are applied.

Text version of Figure 2
ITB recipients:
$2.3B
Canadian suppliers to itb recipients:
$1.3B
Consumer Spending by Assoicated Employees:
$1.1B

Figure 3: Jobs economic impact, annual average, persons, 2013-2017

Pie chart showing breakdown of jobs economic impact. Long description below.

Source: ISED economic modelling based on ITB investments administrative database (IRB Policy (2013-2014), ITB Policy (2014-2017)), 2019; Statistics Canada's Input-Output multiplier (2014), 2019; ITB investments are based on Canadian Content Value credited according to ITB Policy before credit multipliers are applied.

Text version of Figure 3
ITB recipients:
21,620
Canadian suppliers to ITB recipients:
12,847
Consumer spending by assoicated employees:
11,212
  • ITB recipients and their Canadian value chain are estimated to support more than 34,400 jobsFootnote 3
  • In addition, consumer spending by associated employees is estimated to contribute more than 11,200 jobsFootnote 3 to the Canadian economy

3. Investment by industry

ITB investments map closely with regional industrial strengths.

Figure 4: Breakdown of investments by industries and their value chain, 2013-2017

Five charts showing the breakdown of investments by industries in the Canadian regions. Long description below.

Source: ITB investments administrative database (IRB Policy (2013-2014), ITB Policy (2014-2017)), 2019; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied.

Text version of Figure 4
CanadaFootnote 4 Western CanadaFootnote 4 OntarioFootnote 4 QuebecFootnote 4 Atlantic CanadaFootnote 4
Aerospace 41% 39% 34% 70% 28%
Space 2% 1% 4% 1% 1%
Marine 22% 36% 9% 8% 62%
Information Technology/
Land
35% 24% 53% 21% 9%

4. Scaling up SMBs

The ITB Policy is supporting the scaling up of close to 450 SMBsFootnote 5

Figure 5: Featured SMBFootnote 1 recipients benefiting from 2013-2017 ITB investments

Map highlighting featured SMB recipients in the Canadian regions. Long description below.

Source: ITB investments administrative database (IRB Policy (2013-2014), ITB Policy (2014-2017)), 2019; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied.

Text version of Figure 5

Western Canada

  • Alpine Aerotech
  • Computer Modelling Group
  • Corvus Energy
  • Enduron
  • Norsat International
  • TEKTELIC Communications

Ontario

  • Acculogic
  • Contextere
  • Edgewater Computer Systems
  • Exactearth
  • Gastops
  • Nanowave Technologies

Quebec

  • Alta Precision
  • Apollo Microwaves
  • Bronswerk Marine
  • Estampro
  • Haivision
  • Mannarino Systems and Software

Atlantic Canada

  • Bluedrop
  • Genoa Design International
  • Metamaterial Technologies
  • Nautican
  • Solace Power
  • Virtual Marine Technology
  • Over 700 companies of all sizes across all regions of the country are benefiting from ITB business investments.

5. Innovation and skills

Close to $250M was invested in collaborative R&D and skills development between 2013 and 2017.

Figure 6: ITB collaborative R&D and skills development investments, % share, 2013-2017

Pie chart of ITB Collaborative R&D and Skills Development Investments. Long description below.

Source: ITB investments administrative database (IRB Policy (2013-2014), ITB Policy (2014-2017)), 2019; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied.

Text version of Figure 6
Technology transfer:
56%
Collaborative innovation networks:
5%
SMB R&DFootnote 1:
14%
Academic:
25%
Academic R&D:
14%
Academic skills development:
11%

Featured Canadian SMBsFootnote 1 benefiting from ITB collaborative R&D investments:

  • Contextere
  • Edgewater Computer Systems
  • Gastops
  • Mannarino Systems & Software
  • Metamaterial Technologies
  • Nanowave Technologies
  • PAL Aerospace
  • QRA Consulting
  • Solace Power
  • Swiftsure Spatial Systems

Figure 7: Close to 50 academic and research organizations are benefitting from ITB innovation and skills development investmentsFootnote 6

Map of Canadian academic and research organizations benefitting from ITB investments. Long description below.

Source: ITB investments administrative database (IRB Policy (2013-2014), ITB Policy (2014-2017)), 2019; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied.

Text version of Figure 7

British Columbia

R&D
  • Camosun Coastal Centre
Skills development
  • British Columbia Institute of Technology
  • Camosun College
  • University of Northern British Columbia
Both R&D and skills development
  • Simon Fraser University
  • University of British Columbia
  • University of Victoria

Alberta

R&D
  • Northern Alberta Institute of Technology (NAIT)
Both R&D and skills development
  • University of Alberta
  • University of Calgary

Saskatchewan

Skills development
  • Saskatchewan Indian Institute of Technology
  • University of Regina
  • University of Saskatchewan

Manitoba

Both R&D and skills development
  • University of Manitoba

Ontario

R&D
  • Carleton University
  • Centre for Commercialization of Regenerative Medicine (CCRM)
  • Centre for Excellence in Mining Innovation (CEMI)
  • Canadian Institute for Military and Veteran Health Research (CIMVHR)
  • Communications Research Center (CRC)
  • National Research Council (NRC)
  • University of Western Ontario
  • York University
Skills development
  • Actua
  • Canadore College
  • Centennial College
  • Conestoga College
  • Confederation College
  • Canadian Welding Association Foundation (CWA)
  • Lakehead University
  • University of Ontario Institute of Technology (UOIT)
Both R&D and skills development
  • McMaster University
  • Queen's University
  • University of Ottawa
  • University of Toronto
  • University of Waterloo

Quebec

R&D
  • McGill University
  • Université de Sherbooke
Skills development
  • École De Technologie Supérieure
  • École Nationale D'Aérotechnique
  • Polytechnique Montréal

Newfoundland and Labrador

Skills development
  • Memorial University

New Brunswick

R&D
  • Mount Allison University
  • University of New Brunswick

Nova Scotia

Skills development
  • IWK Health Centre Foundation
  • Nova Scotia Community College (NSCC)
Both R&D and skills development
  • Cape Breton University
  • Dalhousie University

6. Key Industrial Capabilities (KICs)

The ITB Policy:

  • Enables SMBsFootnote 1 to access the Global Value Chains of multi-national firms
  • Creates export opportunities in multiple KICs areas

Featured SMBs benefitting from exports opportunities:

  • Alta Precision
  • Gastops
  • Metamaterial Technologies
  • Nanowave Technologies
KIC Area Featured Export Opportunities
Training and Simulation
CAE:
Flights simulation for Brazil, India, and Vietnam
Space Systems
MacDonald Dettwiler and Associates Corporation:
Design, Fabrication, Assembly, and Test of the antenna equipment for the OneWeb satellite constellation

7. Future opportunities

Defence contracts awarded in 2018 have resulted in:

  • 10 new projectsFootnote 8 in the ITB portfolio
  • $894 million of additional ITB obligationsFootnote 9
  • More than 85% of the work relates directly to the projects
  • Close to 60% of proposed ITB investments relate to supply chain activities with SMBsFootnote 1
  • Significant ITB investments in R&D and KICs, such as
    • Cyber Resilience
    • Marine Ship-Borne Mission and Platform Systems

8. Key Findings

The ITB Policy continues to contribute to jobs, innovation, and economic growth.

The ITB Policy is:

  • Contributing to an economic impact of close to 46,000 jobs and more than $4.7B to GDP annuallyFootnote 3
  • Enhancing investments across Canada that align with regional industrial strengths
  • Expanding its impact in SMBFootnote 1 supply chain participation
  • Significantly increasing collaborative innovation at post-secondary institution, SMBs, and in the area of technology transfers
  • Providing more than $2 billion of export opportunities

Going forward, the ITB Policy will continue to motivate the Canadian defence industry by fostering Gender and Diversity Plans, Skills Development and Training, and investments in Key Industrial Capabilities (KICs).

Source: ITB investments administrative database (IRB Policy (2013-2014), ITB Policy (2014-2017)), 2019; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied; All totals are in $CAD.


Annex 1: Methodology principles

  • Methodology concepts are informed by subject matter experts from the OECD and Statistics Canada
  • Foundation data is based on ITB investments over the period of 2013-2017
    • Annual average economic impact analysis is based on the ITB Investments over the period of 2013-2017, with adjustments reflecting the intangible investments and ITB Policy credit multipliers to evaluate the Job and GDP impacts
  • Economic model is based on Statistics Canada Input-Output (I/O) multipliers:
    • Each investment activity has been linked to the latest (2014) and closest related economic impact multiplier
      • All values of the investments have been adjusted for inflation based on the Consumer Price Index (CPI) as well as the Bank of Canada's target CPI of 2% and are expressed in 2014 dollars
    • I/O Multipliers have been adjusted to reflect the ITB 100% Canadian content requirement investment obligation wherever applicable
    • Job and GDP impact is reported on an annual average basis Job impacts are measured in terms of full-time equivalent employment (FTE)
      • Jobs cannot be additive as they are maintained for an extended period after creation
    • Total economic impact includes the activity that occurs within ITB recipients, Canadian value chain, as well as consumer spending by associated employees across the Canadian economy
    • All project analysis are based on investments to date
    • Economic impact estimates are reported at the national level and cannot be broken down at the regional level
    • Totals may not add up to 100% due to rounding

Source: ITB investments administrative database (IRB Policy (2013-2014), ITB Policy (2014-2017)), 2019; ITB investments are based on Canadian Content Value credited according to the ITB Policy before credit multipliers are applied; All totals are in $CAD.

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