Ottawa: Canada’s Powerhouse in Aerospace and Defence Innovation

For more than a century, Ottawa has been at the forefront of aerospace and defence (ADS) innovation, shaping the future of aviation, space exploration, and military technology. From early aircraft manufacturing to today’s cutting-edge satellite communications and cybersecurity advancements, the city has consistently played a pivotal role in global ADS developments. 

This legacy is no accident. Ottawa is home to industry powerhouses like Lockheed Martin Canada, Marshall Group, Babcock Canada, and key federal institutions such as the Defence Research and Development Canada (DRDC) and Public Services and Procurement Canada (PSPC). But beyond the big names, Ottawa is also a launchpad for ambitious startups and scaling businesses eager to push technological boundaries.

With unparalleled access to government support, advanced research facilities, and dynamic business incubators like Invest Ottawa, the city offers a unique ecosystem for ADS companies looking to expand nationally and internationally.  

 

Ottawa’s Aerospace and Defence Landscape 

Ottawa’s aerospace and defence sector (ADS) significantly contributes to Canada’s economy, showcasing a robust workforce and fostering innovation across various domains. In 2023, Canada’s aerospace industry contributed $28.9 billion to the national GDP and employed 218,000 people. Innovations in this industry are powered by a strong network of industry leaders, research institutions, and government support. 

Military Technology 

Ottawa plays a critical role in developing advanced military systems, particularly in Chemical, Biological, Radiological, Nuclear, and Explosive (CBRNE) protection. The city is home to leading defence contractors like BAE Systems, which is actively involved in the development of the Global Combat Ship, providing the Royal Canadian Navy with next-generation warships. 

Ottawa’s robust defence sector is driving innovation in uncrewed systems, with programs like the Remotely Piloted Aircraft Systems (RPAS) initiative supported by industry leaders such as General Atomics. Focused on advancing drone and autonomous technologies, this sector strengthens Canada’s capabilities in surveillance, security, and commercial applications while positioning Ottawa as a national leader in this field. 

Additionally, General Dynamics Mission Systems, headquartered in Ottawa, delivers cutting-edge defence solutions, including secure communications and information systems that support military operations. 

Cybersecurity Solutions 

As cybersecurity threats become more sophisticated, Ottawa has positioned itself as a leader in national defence cybersecurity. Companies like Calian are at the forefront of developing high-performance security solutions tailored to government and military applications.  

First Responder Technologies 

Ottawa’s ADS sector is also advancing technologies that improve public safety and support first responders. Versaterm, a local technology company, specializes in integrated software solutions that enhance emergency response coordination and streamline critical communications for police, fire, and medical teams. 

Research and Development in Aerospace and Defence 

Ottawa’s ADS sector thrives on a strong foundation of research and development (R&D), supported by federal laboratories, government agencies, and academic institutions. These collaborative efforts drive advancements in aerospace technology, defence systems, and cybersecurity solutions. 

  • Ottawa is home to some of Canada’s most advanced research facilities, including the National Research Council (NRC) Aerospace Research Centre, the country’s leading hub for aerospace innovation. The NRC collaborates with industry, academia, and government to advance aerodynamics, propulsion, flight research, and materials performance.
  • Similarly, the Defence Research and Development Canada (DRDC) Ottawa Research Centre focuses on cutting-edge solutions in space systems, cyber operations, communications, radar sensing, and electronic warfare, reinforcing Canada’s national security capabilities. DRDC also supports the Innovation for Defence Excellence and Security (IDEaS) program which funds groundbreaking ADS technology. 
Department of National Defence Headquarters: Carling Campus, Ottawa (Image Credit: ucsh.com)
Department of National Defence Headquarters: Carling Campus, Ottawa (Image Credit: ucsh.com)
  • The Department of National Defence (DND) and Public Safety Canada play a crucial role in funding and overseeing ADS research initiatives. These agencies collaborate with federal labs and industry partners to drive technological advancements that strengthen national security. 
  • NATO Defence Innovator Accelerator for the North Atlantic (DIANA) test centre at Area X.O was announced in 2024 and helps next-gen technologies developed by innovators and endorsed by NATO come to market faster. As a result of this partnership, Ottawa has the highest concentration of test centres in Canada for NATO DIANA.

Applications of ADS Innovations in Ottawa 

Ottawa’s aerospace and defence sector continues to drive innovation with real-world applications that extend beyond Canada’s borders, influencing national security, space exploration, and emergency response technologies. 

Aerospace R&D and Global Impact 

Ottawa’s aerospace research and development plays a crucial role in Canada’s economy, contributing $28.9 billion to the national GDP in 2023 and holding a significant share of the global market. The city’s universities, private companies, and government agencies are recognized internationally for their advancements in satellite and space exploration technologies. 

Image: Canadian Surface Combatant Project (Image Credit: Government of Canada)
Image: Canadian Surface Combatant Project (Image Credit: Government of Canada)
Defence Technologies and National Security 

Ottawa is central to Canada’s largest naval modernization effort, the Canadian Surface Combatants (CSC) program, the most significant shipbuilding initiative since World War II.

This project enhances the Royal Canadian Navy’s capabilities while contributing billions to the national economy. BAE Systems, headquartered in the Capital, supports these efforts through collaboration with the Royal Navy. 

In addition, the Future Fighter Capability Project (FFCP) and the Future Aircrew Training Project (FAcT) play critical roles in advancing national security and military readiness.  

  • The FFCP, awarded to Lockheed Martin, will enhance the Royal Canadian Air Force’s capabilities with cutting-edge fighter jets, ensuring operational superiority.  
  • The FAcT program, led by SkyAlyne and CAE, will modernize aircrew training, equipping pilots and mission specialists with state-of-the-art simulation and training technologies. In cybersecurity, the Canadian Centre for Cyber Security, a division of the Communications Security Establishment (CSE), plays a key role in protecting national digital infrastructure by providing expert guidance and threat mitigation services. 

Major Players in Ottawa’s ADS Sector 

Ottawa is home to several leading aerospace and defence organizations that push the industry forward. 

  • Lockheed Martin Canada: Lockheed Martin is a leading aerospace and defence company with a significant presence in Ottawa. The firm contributes to various ADS projects, including aircraft development, space exploration, maritime systems, and more. 
  • General Dynamics Mission Systems: General Dynamics provides innovative defence solutions, including secure communications and information systems. The company is headquartered in Ottawa, with modern facilities within the city. 
  • Raytheon Technologies: Raytheon Technologies operates advanced engineering and research functions in Ottawa, contributing to radar systems, electronic warfare technologies, and missile defence solutions. The company plays a key role in national and allied defence programs. 
  • Thales Canada: Thales is a global leader in high-tech solutions for defence, aerospace, and transportation. With a strong footprint in Ottawa, Thales Canada supports cutting-edge mission systems, secure communications, and cyber-defence technologies. 
  • L3Harris Technologies: L3Harris operates in Ottawa with a focus on mission-critical technologies for defence and intelligence. Its Ottawa teams contribute to ISR systems, secure communications, avionics, and tactical networking capabilities. 
  • Leonardo DRS: Leonardo DRS is an active defence technology provider in Ottawa, specializing in advanced sensor systems, intelligence solutions, and electronic warfare. The company supports both Canadian and allied military operations. 
  • Curtiss-Wright Corporation: With engineering operations in Ottawa, Curtiss-Wright delivers rugged and secure embedded computing systems for aerospace and defence applications, supporting mission-critical systems worldwide. 
  • Marshall Canada: Part of the UK-based Marshall Group, Marshall Canada operates in Ottawa to support aerospace and defence clients across the country. The company specializes in engineering solutions, fleet maintenance, and deployable infrastructure, serving both military and civilian sectors. Its Ottawa office plays a key role in business development and program support for Canadian Armed Forces initiatives. 
  • Babcock Canada: A subsidiary of the global Babcock International Group, Babcock Canada is headquartered in Ottawa and delivers mission-critical support for defence and marine systems. The company provides in-service support, systems engineering, and naval platform sustainment for Canada’s submarine fleet and other maritime assets. 

Why Ottawa for Aerospace and Defence Companies? 

Ottawa is a premier destination for aerospace, defence, and security companies, offering a powerful combination of world-class infrastructure, government backing, and a highly skilled workforce. The city fosters a dynamic ecosystem where global industry leaders, innovative startups, and top-tier research institutions collaborate to drive advancements in ADS technologies. 

Infrastructure and Ecosystem 

Ottawa is home to major ADS powerhouses like Lockheed Martin and General Dynamics Mission Systems and key federal agencies, including the Department of National Defence (DND), RCMP, Public Safety Canada, and Transport Canada. This strategic concentration of industry and government creates an unparalleled environment for innovation, policy development, and defence procurement. 

Additionally, Ottawa boasts an extensive R&D infrastructure, supported by business accelerators like Invest Ottawa, ensuring companies have access to the resources needed to scale and compete on the global stage. 

Talent and Collaboration 

With one of Canada’s largest pools of highly skilled ADS professionals, Ottawa continuously fuels industry growth. The city’s workforce includes top engineers, cybersecurity experts, and aerospace specialists, many of whom are graduates of the University of Ottawa, Carleton University, and Algonquin College of Applied Arts and Technology, which offer specialized STEM programs, including aerospace and mechanical engineering programs. Our city also boasts the highest tech talent concentration among major North American technology hubs (12.3%), tied only with San Francisco Bay Area. 

These universities, located within the city, produce an ongoing stream of young, ambitious professionals who continue to drive the ADS industry forward. These institutions provide specialized programs in aerospace and mechanical engineering, equipping graduates with the expertise needed to drive innovation in the sector.

These institutions also conduct groundbreaking research, partnering with industry leaders to advance technologies in aviation, defence systems, and cybersecurity. 

Ottawa’s strength lies in its collaborative ecosystem, where private companies, government agencies, and academic institutions work together on cutting-edge projects and research initiatives. This synergy accelerates the development of next-generation ADS technologies. 

Image: Rotorcraft Labs, Carleton University (Image Credit: Carleton University)

Image: Rotorcraft Labs, Carleton University (Image Credit: Carleton University)

Investment Opportunities 

As Canada’s political and technological capital, Ottawa attracts significant aerospace and defence funding. Organizations like the CSA offer grants, contracts, and investment programs that support space-related R&D, while investment programs from NATO Diana, IDEaS challenges, and Innovation, Science, and Economic Development testing streams provide financial backing in other critical areas of defence. Companies such as MDS and Mission Control have successfully leveraged these funding opportunities, expanding their technologies to international markets. 

Outside of government-based funding, ONE9 is a dedicated ADS venture capital firm located in Ottawa. Their mandate is focused on supporting national and economic security-related companies. 

Ottawa’s Aerospace and Defence Future 

Ottawa’s aerospace, defence, and security sector is evolving rapidly, thanks to various innovations reshaping global defence strategies. 

AI and Autonomous Systems in Defence 

AI is transforming military operations, enhancing real-time data analytics, threat detection, and autonomous system operations. Ottawa-based firms are developing AI-driven solutions that improve situational awareness and decision-making in defence applications. Additionally, DRDC is actively researching AI-powered drone technology and unmanned aerial vehicles (UAVs) for reconnaissance and security missions. 

Quantum and Cybersecurity Advancements 

As cyber threats grow more sophisticated, Ottawa is positioning itself as a leader in quantum encryption and next-generation cybersecurity. For example, the NRC is pioneering research into quantum-safe encryption to protect Canada’s military communications from future cyberattacks.  

Investment in Next-Generation Defence Technologies 

With the federal government prioritizing investments in defence innovation, Ottawa is set to benefit from increased funding in AI, cyber warfare defence, space-based surveillance, and advanced military hardware. The Innovation for Defence Excellence and Security (IDEaS) program is headquartered in the Capital region and provides funding to defence initiatives, and also funds groundbreaking R&D projects that push the boundaries of ADS technology.

Interested in Growing Your Aerospace or Defence Business in Ottawa? 

Ottawa is a powerhouse for aerospace, defence, and security (ADS) innovation, with cutting-edge advancements in aerospace research, military technology, and national security solutions. The city’s thriving ecosystem—featuring top-tier research labs, leading defence contractors, and strong collaboration networks—supports the growth of both established companies and emerging ADS businesses. 

At Invest Ottawa, we provide expert guidance to help ADS companies navigate funding opportunities, build strategic partnerships, and scale their operations. Whether you’re a startup looking for R&D support or an established firm seeking international expansion, we’re here to help. 

  • Funding & Incentives: We assist in securing business funding through government grants, research programs, and venture capital. Our team also helps businesses identify and apply for tax credits and industry-specific incentives. 
  • Networking & Collaboration: Through our extensive network, we connect businesses with local organizations, research institutions, and industry leaders, fostering partnerships that drive technological advancements. 
  • Scaling & Expansion: We provide tailored support to help companies expand beyond local markets, covering business planning, regulatory compliance, and competitive analysis to ensure long-term success. 

We are committed to driving innovation within the ADS field by supporting local aerospace and defence companies. Interested in leveraging our Aerospace & Defence ecosystem? We are here to help! 

Get in touch with us today. 

 

 

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