What does it take to move from commercial technology to defence readiness?
Identifying a potential defence application is only the first step.
A product that performs well in a commercial environment may still require additional development before it can be deployed in military environment. Defence applications often involve higher expectations around reliability, durability, security, integration, and performance under challenging conditions.
This transition from a promising technology to a validated defence capability is often referred to as the readiness gap. Understanding that gap, and knowing how to close it, is critical for companies considering defence opportunities.
What is the Readiness Gap?
The readiness gap is the difference between a technology that works in a commercial environment and one that has been proven, tested, and validated for defence use.
For example, a company may already have a successful product in the marketplace, yet adapting that technology for defence applications may require additional work:
- Testing performance under extreme conditions
- Improving reliability and durability
- Integrating with existing military systems
- Completing additional validation or certification activities
These challenges don't necessarily mean the technology is unsuitable. In many cases, they represent the normal development process required to move from commercial success to defence adoption.
For companies willing to invest in that additional research and development, the readiness gap can become an opportunity rather than a barrier.
What regulatory and operational requirements should companies consider before entering defence?
Moving from commercial markets into defence involves more than adapting a product; companies also need to understand the operational requirements that come with working in the defence ecosystem.
These requirements vary depending on the project, technology, and customer, but common considerations include information security, supply chain requirements, export controls, and compliance obligations.
Understanding these expectations early can help companies avoid delays and identify gaps they need to address before pursuing opportunities.
Do I need security clearance to work with defence customers?
Security requirements are one of the first considerations for companies exploring defence opportunities.
Defence projects often involve controlled information, restricted technical data, or access to government systems and facilities. Depending on the nature of the work, companies and employees may need to meet specific security requirements before participating.
Per the Canadian Industrial Security Program (CSP), these requirements may include:
- Personnel security clearances
- Facility security requirements
- Secure handling of technical information
- Cybersecurity practices
- Controlled documentation processes
Not every company needs to complete the same process before exploring defence opportunities, but understanding potential requirements early helps companies plan effectively. Security readiness is not something to address after winning a contract and must be part of the preparation process.
How do defence supply chain requirements affect technology companies?
Defence supply chains often introduce requirements that commercial companies have not previously encountered.
Companies may need to consider:
- Approved suppliers and source countries
- Export control requirements
- Component availability and substitution options
- Domestic content expectations
- Long-term supply chain reliability
For some companies, these requirements can create additional technical challenges.
A component that works well in a commercial product may not be suitable for defence applications, often for reasons like sourcing restrictions, security considerations, or reliability expectations. Replacing that component may require additional research, testing, and validation.
These challenges are part of the readiness gap. Addressing them early can make the difference between a technology that demonstrates potential and one that is ready for defence adoption.
What funding is available for Canadian defence and dual-use technology companies?
Several Canadian programs are designed to support companies as they advance technologies toward defence applications and close the readiness gap through additional research, testing, and product development.
The right funding opportunity depends on the company's stage of development, technology area, and the specific capability being developed. Here are the major public funding programs available:
NRC IRAP Defence Industry Assist (DI Assist)
Launched in January 2026 with $244 million behind it, DI Assist funds Canadian SMEs developing defence and dual-use technologies, through the same advisor model as regular IRAP: funding is negotiated per project rather than fixed. Your entry point is an IRAP industrial technology advisor; if you've claimed IRAP before, you already have one.
Funding can help companies conduct technical development, address capability gaps, and advance technologies toward market readiness.
Innovation for Defence Excellence and Security (IDEaS)
The Department of National Defence's IDEaS program supports innovators developing solutions to specific defence challenges.
IDEaS funds solutions to specific defence challenges in phases: up to $200,000 for a six-month first phase, then up to $1 million over a year to develop the solution further for projects that advance. This is the program North Vector used; its $2.5 million came through here before the DRDC contract followed. The next Challenge Call is expected this year.
BDC and Regional Defence Programs
The regional development agencies (PrairiesCan, for Alberta companies) have $357.7 million to deploy through 2028, primarily as zero-interest loans to SMEs scaling toward procurement opportunities. BDC adds financing and advisory support through its defence platform.
Can SR&ED support defence technology development?
Many of these companies working to close the readiness gap are performing research and development that may qualify for Canada's Scientific Research and Experimental Development (SR&ED) program. This can be an important tool for offsetting some of the costs associated with innovation.
SR&ED in industry agnostic - it supports companies undertaking eligible R&D activities anywhere technological uncertainties need to be resolved.
For dual-use technology companies, that may include work like:
- Developing new materials or components
- Improving system performance
- Testing solutions under new operating conditions
- Resolving technical challenges during product adaptation
The key factor with SR&ED is not whether the end product is commercial or defence-related; the focus is whether you're resolving technological challenges along the way, and much of the work of closing the readiness gap is exactly that.
Summary checklist: how can I enter the defence market?
The defence market presents meaningful opportunities for Canadian technology companies, but success requires more than identifying a potential application.
Companies need to understand the technical, regulatory, and operational requirements involved in bringing their technology into a defence environment.
The companies best positioned to succeed are those that begin preparing early by:
- Understanding where their technology aligns with defence needs
- Identifying the readiness gaps they need to close
- Addressing security and supply chain considerations
- Exploring available funding programs
- Documenting eligible R&D activities
For many innovators, the path into defence will not happen through a single contract or funding application. It will come through deliberate preparation and targeted development.
Copoint helps companies identify relevant funding opportunities, evaluate SR&ED potential, and develop strategies to move innovative technologies from early development toward defence readiness. Get in touch with us today for help in closing your readiness gap.
Tyler Leonzio is a Senior Technology Advisor at Copoint.
