Evidence of meeting #41 for Science and Research in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was companies.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Seïn Pyun  Vice-President, Government and Industry Affairs, Bombardier Inc.
O'Born  Chief Strategy Officer, Council of Canadian Innovators
Yurichuk  Chief Executive Officer and Founder, Wuxly Defence
Perry  Director, Federal Affairs, Council of Canadian Innovators
McDonald  Vice-President, External and Member Relations, Colleges and Institutes Canada
Lefebvre  Vice-President, Emerging Technologies, National Research Council of Canada
Quinn  Secretary General, National Research Council of Canada
Nantel  Vice-President, Research, Innovation and Strategic Enterprises, Niagara College

11:50 a.m.

Conservative

Vincent Ho Conservative Richmond Hill South, ON

My next set of questions is for Mr. Yurichuk at Wuxly.

The Liberals often use the term “buy Canadian” as an empty slogan, but their so-called buy Canadian policy does not appear to guarantee that Canadian defence dollars will primarily support Canadian citizens, Canadian engineers, Canadian manufacturing jobs or Canadian-controlled IP.

Should a real buy Canadian defence policy require Canadian ownership, Canadian control and Canadian workers when national security is involved?

11:50 a.m.

Chief Executive Officer and Founder, Wuxly Defence

James Yurichuk

Yes, I agree that ownership, IP and operations should all get special credits when we're looking at buy Canadian. We have to prioritize.

In our case, when we look at textiles, this is an industry that had 200,000 workers in 1980. We made 70% of the clothing here in Canada. Today we're down to 30,000 workers in the textile and apparel industry in Canada, and it's less than 5% that's made in Canada. However, there is hope. We have 20 schools here in Canada that specialize in apparel and textiles. We have to activate these universities and give them long-term jobs and customers in the Government of Canada for some of these clothing projects.

11:50 a.m.

Conservative

Vincent Ho Conservative Richmond Hill South, ON

Canada has world-class defence equipment firms, including your own, that are clearly capable of producing advanced equipment for export to allied militaries around the world.

When Canadian companies can sell sophisticated platforms, equipment and technologies abroad, but the Canadian Armed Forces struggle to procure modern equipment here at home from our own homegrown companies, doesn't that prove the problem is not a lack of Canadian know-how, talent or industrial capacity, but a failure of government procurement, political will and a national defence prioritization?

11:55 a.m.

Chief Executive Officer and Founder, Wuxly Defence

James Yurichuk

In the Canadian industry, we know what we're capable of. We've been signalling to Canada what we're capable of. Our allies know. They seek out our equipment. We're hoping that some of the activations with the DIA start to address this and we really give a special focus to bringing Canadian firms, making them the anchors here in Canada, putting them under the tent, partnering with them early and building the giants here at home.

11:55 a.m.

Conservative

Vincent Ho Conservative Richmond Hill South, ON

Thank you.

The Chair Liberal Salma Zahid

Now we will proceed to MP Deschênes-Thériault for four minutes.

Please go ahead.

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Thank you.

Mr. Pyun, thank you for your participation.

For the benefit of folks following the committee's proceedings this morning, could you tell us how our investments in R and D benefit the Canadian economy, on a practical level? Investment in R and D helps innovation and businesses, and ultimately, it creates jobs. I would say it benefits all Canadian workers.

11:55 a.m.

Vice-President, Government and Industry Affairs, Bombardier Inc.

Pierre Seïn Pyun

Yes, absolutely. As I mentioned, we have an extensive aviation ecosystem here in Canada. It includes many colleges, universities and other such institutions, which contribute to both R and D and training and education. It's a relationship with tremendous synergy. It's important not to take that ecosystem for granted and to keep investing in it.

The industry has benefited greatly from R and D programming through the Natural Sciences and Engineering Research Council of Canada, Mitacs and others, because it fosters those university partnerships. Developing and commercializing IP here is paramount to our success.

I talked about labour. That, too, is an area where co-operation with the ecosystem is needed. We need the support of colleges and academic institutions to train people. We can't do it on our own.

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Yes, you said you have partnerships with over 25 colleges, universities and schools across the country. What conditions are necessary to successfully take an idea from concept design to commercialization—to commercialize a research idea? How does it work for you? I'd also like to hear what you have to say about IP in that regard.

11:55 a.m.

Vice-President, Government and Industry Affairs, Bombardier Inc.

Pierre Seïn Pyun

Yes. Having system integrators like us is certainly a good thing. I said earlier that few countries in the world have the domestic capability to develop aircraft from A to Z. Few countries have that whole ecosystem. That's why it's important for Canada to preserve, and invest in, the vehicles it has for commercialization. Obviously, private sector companies like us, with our aircraft manufacturing, are one of those vehicles.

I also talked about the importance of leveraging defence procurement to drive homegrown innovation and technological commercialization. That means developing a new procurement process and culture, because until recently, the government has focused on acquiring existing solutions.

Going forward, the government will need a new approach to innovation, one where the relationship with the domestic industry is a two-way street. That means setting out fewer strict requirements at the beginning and instead working with the industry to build requirements that meet Canada's needs.

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Thank you.

Ms. O'Born and Mr. Perry, could you tell us how the investments we are making under the defence industrial strategy can make a real difference for small businesses in our ridings?

I'll give you an example. My riding is home to a specialty clothing manufacturer. On the civil side, it has contracts with police and fire departments. On the defence side, it just completed a contract to supply Ukraine with specialty winter coats. That's thousands of coats designed and manufactured in Canada, in my riding, and shipped to Ukraine. There are real opportunities for economic development. Could you talk a bit about how our defence strategy investments represent opportunities for small and medium-sized businesses?

11:55 a.m.

Chief Strategy Officer, Council of Canadian Innovators

Dana O'Born

Thank you very much for the question. I hope it's okay that I will be answering in English.

This is a great opportunity to think about the work that my colleague James is doing and to maybe make some of those connections in your local community.

It's not very often that I get to ring the bell that I am from the Maritimes, but I am from Nova Scotia. A few months ago, there was a major investment made in Greenwood, Nova Scotia—to the military base down there. Having spoken with some of the folks in the community there, it was sort of shocking—

Noon

Liberal

The Chair Liberal Salma Zahid

Give a quick 10-second answer, please.

Noon

Chief Strategy Officer, Council of Canadian Innovators

Dana O'Born

Building capacity in small communities that aren't used to that type of investment is going to be really interesting and really important, as is building some of the networking infrastructure.

James, maybe we should get you out to Nova Scotia.

Noon

Chief Executive Officer and Founder, Wuxly Defence

James Yurichuk

I'd love that.

Noon

Liberal

The Chair Liberal Salma Zahid

The time is up for MP Deschênes-Thériault.

I would like to thank all the witnesses for appearing before the committee today. On behalf of all the members, thank you.

With that, I will suspend the meeting for a few minutes so that our witnesses for the first panel can leave and the witnesses for the second panel can take their seats.

The meeting is suspended.

The Chair Liberal Salma Zahid

I call this meeting to order.

Welcome back for the second panel.

I would like to make a few comments for the benefit of all the members, as well as the witnesses.

Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mic, and please mute yourself when you are not speaking. For those on Zoom, at the bottom of your screen, you can select the appropriate channel for interpretation: floor, English or French. All comments should be addressed through the Chair.

I would like to remind witnesses that committee members may ask questions in either French or English. If you need interpretation, please take a moment now to prepare your earpiece and select the listening channel. You need to take full advantage of the time allotted for questions and answers.

With that, I would like to welcome our three witnesses for today for this panel.

We are joined by Colleges and Institutes Canada, represented by Michael McDonald, vice-president, external and member relations. We are also joined by the National Research Council of Canada, represented by Dr. Julie Lefebvre, vice-president, emerging technologies, and Dr. Shannon Quinn, the secretary general. The third witness for today is Niagara College, represented by Dr. Marc Nantel, vice-president, research, innovation and strategic enterprises.

Welcome to all of you.

All the witnesses will have five minutes for their opening remarks, and then we will get into the rounds of questioning.

We will begin with Colleges and Institutes Canada.

Mr. McDonald, please go ahead. You will have five minutes for your opening remarks.

Michael McDonald Vice-President, External and Member Relations, Colleges and Institutes Canada

Thank you very much, Madam Chair and members of the committee, for the invitation to testify today.

My name is Mike McDonald. I'm vice-president of external and member relations at Colleges and Institutes Canada, or CICan.

CICan is the national and international voice of Canada’s publicly supported colleges, institutes, CEGEPs, polytechnics, and indigenous learning institutions.

I am here today to deliver a key message: To ensure that Canada's defence research investments realize their full potential, the government will need to take full advantage of colleges and the applied research system, seeing them as crucial partners.

Realizing the full ambition of the defence industrial strategy and other defence investments will require the federal government to more strategically engage partners equipped to address the persistent gaps in Canada's innovation performance, including low business investment in R and D and lagging technology adoption.

With proven expertise in industry-driven, impact-oriented, place-based training and research, colleges are national leaders in preparing talent for high-demand technical roles and supporting business innovation and technology adoption, including in defence-relevant sectors such as AI, aerospace and marine engineering.

Already, according to Statistics Canada, 94% of colleges conduct R and D in emerging technology areas with potential for dual-use applications. Examples include the Southern Alberta Institute of Technology's centre for innovation and research in unmanned systems, Red River College Polytechnic's aerospace and manufacturing technology access centre, Durham College's AI hub, Cégep de Trois-Rivierès' telecommunications and research centre and Nova Scotia Community College's marine engineering facilities.

Through nearly 500 state-of-the-art research centres and labs nationwide, including in northern and Arctic regions, college research supports close to 9,000 partnerships annually, most of them with Canadian SMEs to test, prototype, adopt and scale new technologies. This focus will be vital for turning defence innovations into new products and, conversely, ensuring that new technologies can be harnessed to defend Canada.

Colleges' agile research model, which is driven by industry needs and allows partners to retain intellectual property, attracts nearly one dollar in private investment for every dollar of federal funding in applied research.

Moreover, by engaging students in applied research projects and delivering skills-focused training, colleges are the front lines of ensuring that we have a steady pipeline of talent equipped to meet the evolving needs of the Canadian Armed Forces in the defence industries.

In other words, college research provides the very expertise a thriving defence sector needs, as well as skills training, business innovation and technology adoption.

Nevertheless, federal programs geared towards defence research do not provide colleges with a clear pathway or full access to support applied research in the defence sector. For example, the innovation for defence excellence and security program prevents colleges from leading projects under the innovation networks stream or partnering on such projects. In addition, the costs to meet research security requirements associated with defence research programs are rising.

To address these challenges and ensure that college research capacity is fully leveraged in support of the defence industrial strategy and other investments, CICan is proposing the following four recommendations.

Ensure the full eligibility of colleges in federal research funding programs, including programs administered by DND.

Invest in an applied research technology adoption stream within the bureau of research, engineering and advanced leadership in innovation and science, and make colleges fully eligible for that.

Establish a defence-readiness and onboarding pathway stream under the National Research Council's IRAP defence industry assist program to support industry partnerships with post-secondary institutions to help SMEs integrate and strengthen defence supply chains.

Provide post-secondary institutions, including colleges, with adequate funding to meet the research security requirements associated with defence research.

Thank you. I would be happy to answer the committee's questions.

The Chair Liberal Salma Zahid

Thank you.

We will now proceed to the National Research Council of Canada.

Dr. Lefebvre, please go ahead. You will have five minutes for your opening remarks.

Julie Lefebvre Vice-President, Emerging Technologies, National Research Council of Canada

My colleague Shannon Quinn will be making the introductory remarks.

The Chair Liberal Salma Zahid

Dr. Quinn, please go ahead.

Shannon Quinn Secretary General, National Research Council of Canada

Thank you, Madam Chair, for inviting the National Research Council of Canada, or NRC, to appear before the committee as part of its study on Canada's dual use and defence research needs, and to discuss the NRC's role in supporting defence-related innovation in Canada.

With me is Julie Lefebvre, our vice-president of emerging technologies.

I would like to begin by acknowledging that the work of the National Research Council of Canada takes place on the traditional ancestral and unceded territories of first nations, Inuit and Métis. Across the country, where our research and innovation activities occur, we recognize our responsibility to work in partnership with indigenous communities. As Canada strengthens its capabilities in science, technology and innovation, including those that support national security and defence, we are committed to engaging with indigenous peoples in ways that respect indigenous knowledge, priorities and rights. Meaningful collaboration with indigenous partners helps to ensure that advances in areas such as emerging technologies, climate resilience and security contribute to the well-being of all communities in Canada.

Since its inception in 1916, the NRC has played a central role in Canada's research and innovation system. Defence-related research has long been part of its activities, advancing technologies with both civilian and military applications.

During World War II, the NRC supported Canada's defence science and technology efforts by developing innovations such as nuclear energy, radar systems and protective equipment like anti-gravity suits to enhance the safety and effectiveness of Canadian forces.

After World War II, the NRC shifted its focus to dual-use research and innovation and to strengthening the Canadian economy. It was in this context that the NRC Flight Research Laboratory was established more than 80 years ago, jointly by the Royal Canadian Air Force and the NRC. Since then, it has played an important role in the development of Canada's civil and defence aerospace capabilities.

Today the Department of National Defence is the NRC's largest client. Over the last 10 years, the NRC has carried out an average of 29 million dollars' worth of defence-related work with DND annually. Across our research centres, the NRC is advancing capabilities in drones, Arctic vehicles, photonics, quantum technologies and artificial intelligence, just to name a few. These are all aligned with the evolving needs of the Canadian Armed Forces.

Looking to the future, the NRC's scientific expertise, long-standing collaboration with the Department of National Defence and the Canadian Armed Forces, and strong connections to colleges, universities and Canadian SMEs position us to support Canada's defence industrial strategy.

The Government of Canada committed $996 million to the NRC to support the defence industrial strategy, including the NRC's IRAP defence industry assist initiative, which will help SMEs develop defence and dual-use technologies.

An NRC drone innovation hub will help Canada test and validate drones and advanced autonomous systems, thereby helping Canadian companies bring promising technologies to the operational stage. Quantum technologies are another key area of focus. The NRC has expertise in quantum sensing, computing and communications and materials.

Through initiatives such as the quantum sensors challenge program and the quantum safe technologies initiative, the NRC is advancing capabilities in secure communications, sensing and computing with potential for both civilian and defence uses.

The NRC is also delivering a biomedical countermeasures initiative to bolster sovereign capacity for development of biologics and the manufacturing of diagnostics, vaccines and therapeutics against defence priority biothreats.

In addition, the NRC hosts five test centres as part of NATO's DIANA, providing environments in which innovators can test and validate emerging dual-use technologies.

In summary, the NRC continues to advance national research and innovation priorities, contributing to Canada's sovereignty by developing and deploying critical capabilities for the military and helping strengthen Canada's defence industrial base.

Thank you, Madam Chair. We look forward to answering the questions of the committee.

The Chair Liberal Salma Zahid

Thank you, Dr. Quinn.

We will now proceed to Niagara College.

Dr. Nantel, you will have five minutes for your opening remarks. Please go ahead.

Marc Nantel Vice-President, Research, Innovation and Strategic Enterprises, Niagara College

Thank you, Madam Chair.

I'd like to thank the committee for undertaking this study and for inviting me as a witness.

My name is Marc Nantel, and I'm the vice-president, Research, Innovation and Strategic Enterprises at Niagara College.

I have experience in research at both university and college levels. I was an adjunct professor of physics at the University of Toronto for 10 years. I've been at Niagara College since 2011, leading its research and innovation division.

I'm here representing the college system in general, and Niagara College in particular. Our graduates are the backbone of industry: for every Ph.D, MBA or engineer in a company, there are many more trades people, technicians and technologists who support them.

The current challenge of bringing Canada in line with its NATO promises and other national defence, sovereignty and security imperatives will require a whole-of-system commitment, collaboration and coordination.

One key aspect of all this will be speed: speed of response, speed of pivoting, speed of delivery for Canada. All targets of this study—universities, colleges, the NRC, industry and government departments—will have to contribute. Some of these will go deep; some will go far, and some will go high. Colleges across the country will do that, but they will also provide speed.

Our role in helping Canada with its dual-use and defence research needs can be broad, but let me boil it down to just two components and one tease: education, applied research and research networks.

I will give you some specific examples from my college to illustrate what's possible.

On education and speed in delivering the people we need, Niagara College is the first public post-secondary institution in the country to launch new defence-specific education programs. These are the defence systems engineering technician and technologist programs, or DSET. These programs are available this very fall, in 2026, in response to the urgent need for talent in this sector. The new DSET program will focus on the design, construction and deployment of drone technology—ground-based, aerial and marine—and build on unique photonics programs that we've been offering for 25 years, from which many of our graduates found jobs at local defence suppliers, such as L3Harris and Raytheon ELCAN.

In our DSET program, students will learn all the safety, design, sensors, 3-D modelling and printing, mechanical, electronics, photonics and payload skills they will require to have rewarding and productive careers supporting Canada's dual-use and defence production and research needs.

They will support sectors such as aerospace manufacturing, defence, marine robotics, public safety and emergency services, mining and natural resources, and agriculture and entertainment, to name a few.

In research, it's about the speed of delivering new Canadian products we need. Colleges are best placed to help companies pivot to be part of Canada's ambitious dual-use and defence supply chain, which Prime Minister Carney wants to boost to reduce our dependence on other countries. As my colleague from CICan pointed out, 94% of colleges conduct R and D in emerging technology areas with dual-use applications, working closely with industry. We must maintain and sustain our Canadian manufacturing capacity, and we must do it at speed.

As we see our neighbour to the south grow increasingly protectionist with its auto industry, for example, some of our manufacturers in that sector must be able to pivot from auto to defence. However, it's not just about manufacturing. At Niagara College while we have our Walker Advanced Manufacturing Innovation Centre helping tens of manufacturers every year, and it is key to our DSET program, we also have our food and beverage innovation centre, which can work with food processors and providers to develop products for military uses. We have a horticultural and environmental sciences innovation centre working on controlled environment food production for harsh conditions, such as in the north or arid landscapes. We have our healthy aging and wellness innovation centre, which is developing tools for dementia and mental health that could be applied to soldiers with complex conditions such as PTSD or other psychological ailments.

Industry and community partners retain the intellectual property developed through these projects, so commercialization is delivered at speed.

The tease I promised at the beginning is on research networks. This committee has heard me speak in previous studies on the Southern Ontario Network for Advanced Manufacturing Innovation, or SONAMI. Since my time in this opening statement is limited, I'll hope that you can ask me questions about it, and we can cover it then.

In the meantime, I'll say that I wholeheartedly support the request made by my colleagues Michael McDonald from CICan and from a previous session, Ken Doyle, from Tech Access Canada. Colleges can do more and do it at speed.

Thank you.

The Chair Liberal Salma Zahid

Thank you, Dr. Nantel.

With that, we will proceed to the rounds of questioning. We will begin our first round with MP Baldinelli for six minutes.

Please go ahead.