Canada Launches 5-year, $900M Aerospace and Defense Initiative

To promote excellence and accelerate innovation in the nation's aerospace, defence, security and space industries, Canada earlier this month launched the Strategic Aerospace and Defence Initiative (SADI) -- a repayable contribution program being administered by Industry Canada's Industrial Technologies Office (ITO).



Canadian aerospace, defence, security and space industries are knowledge-intensive and major contributors to Canada's economy. The aerospace sector, alone, had sales of $21.8 billion and exports of $18.5 billion and employed 75,000 highly skilled-and-paid Canadians in 2005. SADI is expected to invest nearly $900 million over the next five years, with funding to reach up to $225 million per year, in support of these industries.



SADI was developed with three objectives in mind: (1) to encourage strategic R&D that will result in innovation and excellence in new products and services; (2) to provide enhanced opportunities for Canadian A&D industries; and (3) to foster collaboration between research institutes, colleges, universities and the private sector. By investing in strategic R&D projects, ITO will concentrate its resources on projects that involve the development of technologies that focus on next generation products or services, build on Canadian strengths, enable Canadian companies to participate in major platforms, and assist in meeting Canada's international obligations. Each project proposal will be assessed according to its technology, social and economic benefits and the submitting company's ability to achieve the stated objectives.



SADI's repayment structure will be formula-based and standardized. Repayments on contributions will be based on gross business revenues of a recipient company, or its relevant division which lowers the risk to the government. The repayment will start regardless of the success of the technology developed. On average, repayment periods will be limited to 15 years, with repayments starting shortly after the completion of the R&D phase. All of these features will allow for more money being repaid earlier to the government.



More information about the Strategic Aerospace and Defence Initiative can be found on ITO's website at www.ito.gc.ca.