How TKMS’ Canadian Defence & Dual-Use Innovation Ecosystem Advances Canada’s Defence Industrial Strategy

Sovereign Capabilities: Through Shared Innovation

BY DR.-ING. JERONIMO DZAACK

Canada’s Defence Industrial Strategy (CDI) requires more than increased domestic production—it needs a permanent innovation-to-market pipeline that converts research excellence into sovereign capabilities.

TKMS’s Canadian Defence & Dual-Use Innovation Ecosystem (CDDE), proposed as part of our CPSP partnership links universities, industry, Indigenous partners, SMBs, and international allies in a structured 15-year framework that moves technologies from research to market. It focuses initially on maritime and Arctic sovereignty, including protection of the Northwest Passage and monitoring of critical sea lanes, before expanding across all domains form seabed to space.

READ: TKMS launches CDDE – Canadian Defence & Dual-Use Innovation Ecosystem

CDDE helps close the “valley of death” for startups, strengthens domestic supply chains, supports Indigenous and women-led enterprises, and embeds Canadian firms into European and global value chains. It advances key CDI aims: 70% domestic participation, sovereign capability growth, export expansion, and accelerated deployment. TKMS supports as industrial anchor, venture client and facilitates commercialisation.

CDDE positions Canada to translate defence innovation into operational superiority, economic resilience, and long-term strategic autonomy. CPSP offers a generational opportunity to leverage procurement to reinforce key national capabilities across the board. For this, CDI sets measurable objectives, notably to lift domestic defence industrial participation to 70 % and build sovereign capabilities, expanding exports, and accelerating research-to-deployment pathways.

Increased industrial output alone does not create sovereignty. What is required is a permanent defence and dual-use innovation pipeline linking research and development with commercialization, scaling, certification, and operational deployment.

To meet this need, TKMS proposes to establish a defence and dual-use innovation ecosystem as part of its CPSP-bid. This CDDE creates a sovereign, globally competitive network that translates research into operational capabilities and viable scalable products. It generates civilian spin-offs, retains intellectual property and talent in Canada, and embeds Indigenous co-governance and women-led initiatives throughout the supply chain. By directly linking R&D to domestic and international procurement, it provides the innovation-to-market engine envisioned by the CDI.

WHAT IS THE CDDE?

CDDE is an end-to-end innovation ecosystem designed to convert Canada’s research excellence into operational defence and dual-use systems – with close cooperation of the German and Norwegian ecosystems. It transforms operational challenges into rapid, market-ready solutions while strengthening strategic autonomy and economic resilience. Its technology priorities include quantum technologies, artificial intelligence, autonomous systems, advanced manufacturing, and cyber defence as prioritised by the CDI. These domains support both national security and commercial competitiveness, fostering high-skilled employment and export potential.

We will implement CDDE in successive phases, expanding use cases and partners over time. The initial phase focuses on maritime applications that enhance naval superiority, Arctic sovereignty, and clean technologies. Core use cases include protecting the Northwest Passage, monitoring large maritime areas such as the St. Lawrence Seaway, and securing critical choke points including deep-sea ports.

Through partnerships with universities, CDDE establishes joint research laboratories, STEM training pathways, and personnel exchanges with German and Norwegian institutions. CDEE embeds international cooperation into Canada’s sovereign innovation framework.

CDDE’s NETWORK

The initial CDDE ecosystem includes three Canadian universities, commercialization partners, technology and test hubs led by industrial actors, Indigenous partners, small and medium-sized businesses (SMBs), diversity-focused firms, and international defence and research partners. It builds on the established strategic cooperation model of the 212CD submarine program in Germany and Norway.

A Steering Committee composed of senior representatives from government, defence, academia, and industry sets technology priorities, allocates resources, and monitors commercialization success through metrics such as job creation, technology-readiness advancement, and dual-use export growth.

WHO CAN JOIN IN THE FUTURE?

The CDDE welcomes innovators, industry partners, government institutions, Indigenous and women-led businesses, Small and Medium Businesses (SMBs), and large corporations. The first phase concentrates on maritime use-cases; subsequent phases expand the model across domains, including aerospace, land systems, and cyber. New research, demonstration, and commercialization partners are integrated for each sector.

By pooling expertise and infrastructure, the ecosystem accelerates commercialization, reinforces defence and economic security, and positions Canada’s world class R&D landscape competitively in global innovation markets.

WHAT DO PARTNERS CONTRIBUTE?

Partners provide research, infrastructure, funding, governance, and market access. Universities and commercialization entities deliver curricula, upskilling modules, and business-model development, especially in research priorities such as AI, autonomy and clean tech. Business schools accelerate time-to-market through commercialization strategies. Start-ups receive mentoring, venture-client “match-making”, access to test facilities, supplier networks, and investors. Indigenous partners contribute environmental expertise, support inclusive supply chains, and ensure regional employment alignment. Industrial primes provide technology hubs, test sites, demonstrators, act as early-stage venture-client customers and facilitate global market access.

All founding partners have deep expertise in remote and Arctic systems, enabling cross-domain innovation. Trusted collaboration mechanisms connect CDDE with European R&D institutions like Fraunhofer and the German Aerospace Center, while open to partner with innovation hubs such as the Bundeswehr Cyber Innovation Hub and the new German Armed Forces Innovation Centre.

ALIGNMENT OF CDDE & CDI

The CDDE functions is an innovation-to-market engine that advances objectives of the CDI. It provides test and training infrastructure, conducts field trials under Arctic conditions, and integrates technologies into certified dual-use products. It also supports SMBs, Indigenous-owned and women-led enterprises and finds likeminded partners with Germany and Norway. TKMS directly supports through venture-client mechanisms, start-up challenges, sea-trial facilities, and opening up its global supply chain.

The CDI defines specific targets: increase domestic procurement to 70%, grow sovereign capabilities, strengthen supply chains, expand exports, and accelerate research-to-deployment. CDDE directly supports each objective.

CLOSING THE GAP FROM
INNOVATION TO PROCUREMENT

CDDE is explicitly designed to bridge the startup “valley of death” between early-stage research and defense or dual-use procurement. CDDE addresses this through a structured pipeline: research, prototyping, field experimentation, system integration, certification, and commercialization. Technologies are hardened, integrated, and aligned with military requirements. This reduces transition risk and converts cutting-edge research into operational capability and internationally competitive products.

SUPPORTING SMBs

SMBs form the backbone of Canada’s defence industrial base. The CDDE engages supply chain clusters. Through early stage innovation support, prototyping and field trials, CDD moves SMBs from concept to products.

TKMS acts as venture client for maritime applications by committing early to procure promising technologies and future products from startups or SMBs. This mitigates risk, attracts investment, reduces entry barriers, and integrates Canadian firms into international value chains.

ARCTIC SOVEREIGNTY

The CDDE reinforces Arctic sovereignty through maritime protection of the Northwest Passage, continuous monitoring of large sea areas, and security as ports and other chokepoints. An Arctic Technologies focus develops autonomous monitoring systems, environmental data modelling, and resilient communications for northern operations.

Access to Arctic research infrastructure enables land-based and under-ice testing. The innovation pipeline ensures Arctic-focused concepts progress from research to commercialization within a sovereign, Indigenous-inclusive supply chain.

LONG-TERM INDUSTRIAL COMMITMENT

The proposed CDDE offers unique value to Canada and is a long-term commitment along a 15 year roadmap for TKMS. For its Canadian network members, CDDE reduces commercialization risks by providing early access to the capability requirements of TKMS, joining primes, as well as the Canadian, German and Norwegian Armed Forces. It integrates with other Canadian, German, Norwegian and EU innovation ecosystems and funding instruments. This unique advantage unlocks early access to European and global markets and helps to turn Canada’s cutting-edge defence and dual-use research into operational advantage and worldwide commercial success.

Dr.-Ing. Jeronimo Dzaack is Senior Vice President oceanx, TKMS