Three Opportunities for the Growth of Canada’s Defence Industry

Blog

By Dr. Daniel O. Livvarcin, CEO of Vectors Group

After spending a career in the Navy and being involved in more than a hundred national and international R&D projects, I learned something that is not always obvious from the outside. Innovation in defence does not begin with a finished system or a perfect plan. It begins much more modestly.

I remember projects where we started with a simple idea, sometimes just a sketch on a whiteboard or a conversation between a few people trying to solve a very practical problem. What made those projects succeed was not the idea alone, but the people who came together around it. Engineers, operators, researchers, and industry partners, often from different countries, each brought their own perspective. At the beginning, no one had the full picture. Each of us held only a part of the solution.

Over time, as those pieces came together, something larger emerged. A system. A capability. Something that could actually be used in the field.

That experience has shaped how I see Canada’s defence industry today. We are not lacking capability. In fact, we are surrounded by it. Across the country, there are companies building remarkable technologies, researchers pushing boundaries in universities, and entrepreneurs willing to take risks. The challenge is not the absence of strength. The challenge is that much of this strength exists in parallel rather than in alignment.

This is where our way of thinking at Vectors comes from. We see every individual and every organization as a vector, each with its own magnitude and its own direction. On their own, these vectors are meaningful, but limited. When they point in different directions, their impact is scattered. But when they are aligned, when they move in the same direction, their combined force becomes significantly greater.

Canada already has the magnitude. What we need now is alignment.

 

  1. Collaboration and Systems Thinking

I remember sitting in a project review meeting years ago, surrounded by engineers, operators, and industry partners from different countries. Each team was presenting their work. One had developed an impressive sensor. Another had built a highly reliable communication module. A third team demonstrated a piece of software that could process data faster than anything we had seen before.

Individually, each of these contributions was exceptional. But there was a quiet understanding in the room. None of them, on their own, solved the operational problem we were facing. The system we needed did not yet exist. What we had were pieces, and unless those pieces were brought together in a coherent way, they would remain impressive, but incomplete.

I often explain this with a simple analogy. Imagine a company that produces one of the best car cooling engines in the world. It is efficient, reliable, and innovative. But it cannot be sold on its own. No customer is looking to buy a cooling engine. They are looking for a car, something complete, something that works as a whole.

Defence operates in much the same way. Throughout my career working with allied forces and industry partners, I rarely saw procurement decisions made around standalone components. Armed forces do not buy parts; they invest in systems that are integrated, tested, and ready to perform in complex, unpredictable environments.

When I look at Canada today, I see an abundance of capability. We have companies building advanced sensors, researchers developing cutting-edge algorithms, and teams working on materials and subsystems that are truly world-class. I have met many of these people. I have seen their work. The quality is not the issue.

The challenge is that too often these capabilities exist in isolation. They move forward in parallel, each solving an important piece of the puzzle, but without always being connected to a larger system-level vision.

There is also a dimension we sometimes overlook. Some of the most valuable knowledge in this country comes from lived experience. I have seen how Indigenous communities, particularly in the Arctic, understand the land, the environment, and operational realities in ways that no lab can replicate. As Canada’s strategic focus increasingly turns north, collaboration with these communities is not just respectful, it is essential to building systems that actually work in those conditions.

If we are serious about building effective defence systems, we need to broaden how we think about collaboration. It is not only about connecting companies and universities. It is about bringing together industry, academia, government, and Indigenous and Arctic communities, each contributing their own expertise and perspective.

When we begin to think in terms of systems, when we align complementary strengths toward a shared objective, something powerful happens. We move beyond being individual contributors to becoming providers of complete solutions. We start to speak the language that procurement agencies understand. We position ourselves not just as suppliers, but as partners.

In my experience, the most impactful projects were never the ones with the single best component. They were the ones where different capabilities came together seamlessly, where integration was not an afterthought but the starting point.

That is where real value is created. And that is where Canada has the opportunity to redefine its place in the defence ecosystem.

 

  1. Human Capital, Solidarity, and Motivation

Over the years, I have had the privilege of working with people across Canada and among our allies. Engineers, scientists, operators, and policymakers. Canadian talent has always stood out, not only for technical capability, but for adaptability and a willingness to collaborate.

What feels different now is the level of shared motivation.

Recent global and political developments have reminded Canadians of the importance of resilience, sovereignty, and innovation. There is a renewed sense of purpose. I see it in conversations with young researchers who want their work to have real-world impact. I see it in entrepreneurs who are more willing to take risks. I see it in professionals who are ready to step into more complex challenges and think beyond traditional boundaries.

This kind of collective energy is not something that can be engineered, but it can be guided.

Canada has something unique. A diverse, educated, and collaborative workforce combined with a culture that values inclusion and partnership. When this is paired with a clear sense of direction and opportunity, it becomes a powerful force for innovation.

In defence, this matters more than ever. The challenges we face are complex, and the solutions require not only technical expertise, but creativity, courage, and a willingness to think differently.

If we can support this momentum, invest in our people, and create environments where innovation is encouraged, Canada’s human capital will not only support the defence industry, it will drive its transformation.

 

  1. Strong Connections with NATO Allies and Friendly Countries

Throughout my career, working with NATO allies and partner nations was not just beneficial, it was essential. Defence has always been a collective effort. Systems must work together across borders, standards must align, and trust must be built over time.

Canada is in a unique and privileged position in this regard. We are a trusted partner with deep and longstanding relationships. That trust is not built overnight. It comes from consistency, reliability, and a shared commitment to common goals.

These relationships open important doors.

They create access to international markets, but more importantly, they create opportunities for collaboration. Joint development programs, shared research initiatives, and integrated supply chains are becoming the norm rather than the exception.

In today’s environment, where supply chains are being reconsidered for security and resilience, Canada has an opportunity to position itself as a dependable and innovative partner. Not just as a supplier, but as a contributor to larger, multinational systems.

Canadian companies do not need to operate in isolation. They can be part of something bigger. They can bring their expertise into global programs, collaborate with allies, and help shape the future of defence technologies.

 

My two cents

Looking back on my career, the most successful projects were never about a single organization or a single breakthrough. They were about integration, trust, and shared purpose.

Canada already has the pieces. We have the talent, the ideas, the relationships, and the capabilities.

What we need now is alignment.

If we can connect our strengths, support our people, and leverage our partnerships, Canada’s defence industry can move from being a collection of strong contributors to a truly integrated and globally competitive ecosystem.

And when our vectors are aligned, the direction becomes clear, and the impact becomes far greater than the sum of its parts.