Perspectives for the development of key industrial capabilities for Canada’s defence sector

With the Canada First Defence Strategy, Canada has put forth a major opportunity to reconcile national security imperatives and industrial policy. The Jenkins Report (2013) set out to examine ways to use that procurement effort to foster key industrial capabilities (KICs) that would put the Canadian defence industry at an advantage both nationally and internationally. The Canadian defence industry should then develop highly focused capabilities with a view to moving up global value chains. As such, KICs that hold the best potential should be selected. They should be sustained through a range of strategies that are however contingent on the elimination of policy gaps. This leads to a balancing act between the need to control intellectual property assets versus accessing them in a world where national boundaries are eroded. Canada’s industry should target opportunities outside North America while continuing to focus on better integration with the North American industry.