AIAC applauds federal budget measures to support innovation and advanced manufacturing

March 22, 2017

Ottawa (Ontario), March 22, 2017 – Today the federal government announced its latest budget, which included a rollout of various measures in support of the government’s Innovation Agenda. The measures, which include the recognition of advanced manufacturing as a strategic sector for Canadian economic growth, will directly support the ability of Canada’s aerospace industry to innovate, grow, and create wealth and prosperity for middle class Canadians.

“Over the past few years we have been working closely with the government to better leverage the competitive advantages that advanced manufacturing, including Canadian aerospace, offers to Canada’s economy, environment, and communities. Today’s budget reflects our advice to the government and will directly contribute to our sector’s continued growth. We are very pleased and we thank the government for their commitment to fostering Canadian growth and innovation,” said Jim Quick, President and CEO of the Aerospace Industries Association of Canada (AIAC).

Measures that will support Canadian aerospace include:

  • Identification of advanced manufacturing as one of six high-growth priority sectors
  • $950 million over five years to support the development of a small number of business-led innovation “superclusters with the potential to accelerate economic growth
  • $1.26 billion over five years to support the creation of a Strategic Innovation Fund to consolidate and simplify existing business innovation programming, including the Strategic Aerospace and Defence Initiative (SADI), the Technology Demonstration Program (TDP), the Automotive Innovation Fund (AIF) and the Automotive Supplier Innovation Program (ASIP)
  • $50 million, starting in 2017–18, to launch a new procurement program, Innovative Solutions Canada, modelled on the U.S. Small Business Innovation Research (SBIR) program
  • $80 million over 5 years to the Canadian Space Agency (CSA) to support the demonstration and utilization of Canadian innovations in space
  • $400 million over 3 years for the Venture Capital Catalyst Initiative to support late-stage venture capital for young established businesses, to be distributed by the Business Development Bank of Canada (BDC)
  • Legislation to allow for more effective cost recovery for regulatory and certification services, so that new products and services can be brought to market faster and enhance the transportation sector’s competitiveness
  • Renewed funding of $59.6 million in 2017–18, to support the National Research Council (NRC)’s business innovation initiatives, including aerospace
  • Expansion of the Accelerated Growth Service to coordinate support for businesses across multiple federal departments and agencies
  • Establishment of Innovation Canada, a new platform led by Innovation, Science and Economic Development Canada (ISED) that will coordinate and simplify the support available to Canada’s innovators
  • A whole of government review of business innovation programs, including the Scientific Research and Experimental Development (SR&ED) tax credit
  • $225 million over four years, starting in 2018–19, and $75 million per year thereafter, to establish a new organization to support skills development and measurement in Canada
  • Creation of up to 8,700 STEM-focused work-integrated learning placements over the next four years
  • $7.8 million over two years, starting in 2017–18, to implement a new Global Talent Stream under the Temporary Foreign Worker Program, as part of the Global Skills Strategy

To read the full budget, visit

About AIAC: 

AIAC is the national association representing Canada’s aerospace manufacturing and services sector.  As the world’s fifth-largest aerospace industry, Canada’s aerospace sector contributes over $28B to the economy in GDP, exports 80% of its output, and dedicates over 20% of its activity to research and development (R&D). Aerospace is responsible for the employment of 211,000 Canadians.

For information:

Kristen VanderHoek
Director of Communications
Aerospace Industries Association of Canada
613 232-4297 x225