This article was first published by The Hill Times.
The recently elected Carney government faces a fraught global security environment, and an unprecedented multiparty consensus to spend more on defence. One notable defence spending proposal in the Liberal platform was the launch of a Bureau of Research, Engineering and Advanced Leadership in Science (BOREALIS). Recognizing the increasingly important role of technology in the global security environment, BOREALIS—if done right—could ensure that Canada keeps pace in the fast-moving world of disruptive technologies.
An effective approach to technology in defence policy is not merely a question of spending more. The government will have to wrestle with the core challenge of managing “dual-use” technologies for increased spending to make the most meaningful impact.
The concept of “dual-use” refers to technologies that can have both civilian and military applications. Historically, large research budgets in the defence sector meant that technologies—like the internet—were developed in the military world, and found civilian applications later. Technological developments can also appear first in civilian contexts, and be initiated by the private sector, as with Low Earth Orbit satellite communications, later deployed on battlefields in Ukraine. Similarly, Canada’s RADARSAT program—developed in the 1990s for natural resource management and environmental protection—evolved into a valuable tool for national security and intelligence, especially in the Arctic. A greater focus on Canadian dual-use technologies will bring new benefits and risks.
Recognizing the importance of dual-use technologies for defence policy requires a review of existing government programs. Research efforts funded through the National Quantum Strategy, for example, could be reviewed for potential military use cases, and dual-use projects could be connected to BOREALIS. In addition to providing improved co-ordination of dual-use potential across the whole of government, a more accurate accounting of Canada’s total defence spending will be gained. New projects funded through existing schemes could be incentivized by BOREALIS to consider dual-use applications, building a new culture of virtuous bi-directional civil-military research and development (R&D) flow across the public and private sectors. If Canada is to meet ambitious defence spending goals while also supercharging its technology sectors, it needs this synergy.
But an important part of the dual-use challenge is recognizing the multiple tensions at play in government engagement with the private sector. British MP Harriett Baldwin’s 2024 report prepared for NATO outlines key benefits of a dual-use technology for defence. When private actors develop technologies for commercial applications, defence budgets are relieved of the pressure to fund costly initial R&D phases, she argues. Commercial development can also be cheaper because civilian markets offer greater economies of scale. However, when development takes place in the private sector, it means that governments do not directly control the efforts, raising potential governance challenges when industry fully leads on specific technologies, as with Starlink in Ukraine.
The labelling of these technologies as dual-use also introduces complications for the private sector actors that must be considered. Companies are currently disincentivized from exploring dual-use applications because of export controls, funding restrictions, and other regulatory requirements applied to military capabilities. For the Canadian private sector to fully engage, they will need sufficient international market access and clear guidelines for their operations to not compromise their competitiveness.
Finally, it is worth noting that Canada begins this journey from a position of strength in many key technologies. This country boasts a highly educated workforce, and leading capabilities in quantum information science and artificial intelligence. Canadian researchers and startups are making important breakthroughs, but there is a risk that lagging government investment in supporting these industries will see many of these world-class firms move elsewhere. To this end, we do see that the success of BOREALIS will depend in part on the magnitude of investment matching the scope of the opportunity.
By investing in dual-use emerging technologies, Canada can achieve important defence objectives while also bolstering the development of new technologies and industries that can drive our prosperity. But for these investments to have full impact, they must take place within the context of a retooled approach to dual-use policy across the government.
