Industry Canada has released its highly anticipated aerospace and defence strategy built on seven priority areas aimed an ensuring the future competitiveness of the sector. The National Aerospace and Defence Strategic Framework is highlighted by a new technology development program that succeeds the sunsetting Technology Partnerships Program (TPC) and will incorporate funds for demonstration projects, collaborative initiatives and supplier development.

Funding for the new Aerospace and Defence Technology Development program is slated for next federal Budget, anticipated in February.

The Framework was developed in conjunction with the Canadian Aerospace Partnership (CAP). It recognizes the relatively mature product base underpinning the sector, the trend towards large international development projects and a shift in focus by the major players towards design, integration and assembly. It also reinforces the role of governments in the sector’s evolution, particularly in the areas of global market access, procurement and R&D.

“The strategy reflects the challenges and strategic responses the CAP has been talking about. It’s a great foundation on which to build but it’s still very much a framework taking a 40,000-foot view,” says Peter Boag, president and CEO of the Aerospace Industries Association of Canada (AIAC). “It has identified the need for a new fund but it still doesn’t exist. There’s no detail yet.”

Boag says the Framework represents the first time Ottawa has achieved such a broad consensus with industry and other players in the sector. He notes that the need for increased R&D is recognized throughout the complete development process and beyond in the area of so-called after-market technology insertion. That support is also tailored to the Canadian environment and doesn’t seek to replicate the efforts of government in other countries featuring strong aerospace and defence industries.

“Our market is unique. We need a level playing field that reflects the nature and structure of our industry and that’s a risk-sharing approach,” he says. “It’s a broad comprehensive framework and the new technology development program isn’t the sole method for supporting the industry. Right now, government support is a series of stovepipes and islands that are not well connected.”

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