Canada's Department of National Defence (DND) buys innovation through two main programs, and they work very differently. Innovative Solutions Canada (ISC) runs procurement-style challenges — specific problems with fixed funding and deadlines. IDEaS (Innovation for Defence Excellence and Security) funds earlier-stage defence R&D across a wider set of applicants.
If your technology has a defence or dual-use application — autonomy, sensors, comms, materials, AI, counter-UAS — these are the doors to a first government contract. Here is how each works and how to pick the right one.
Innovative Solutions Canada (ISC) defence challenges
ISC posts specific challenges on behalf of federal departments. The standard model is two phases — a small feasibility contract, then a larger prototype contract. DND's recent defence challenges (the MINERVA Initiative series and space challenges) are structured differently: Phase-2-only solicitations with elevated caps of $500,000 to $2 million, seeking near-market solutions at TRL 5–9.
Eligibility is SME-oriented: a for-profit Canadian-incorporated business with 499 or fewer full-time employees, R&D performed in Canada, and at least half of wages, employees, and senior executives Canadian-based.
IDEaS (Innovation for Defence Excellence and Security)
IDEaS is DND's own innovation program. Its flagship Competitive Projects element funds solutions through TRL-gated phases — from early feasibility all the way to advanced prototypes, up to $6.75 million total. Eligibility is much broader than ISC: individuals, academia, not-for-profits, and sub-national governments can apply (federal and provincial Crown corporations are excluded). IDEaS submissions now run through CanadaBuys.
ISC vs IDEaS: which fits
- Near-market solution (TRL 5–9), you're a Canadian SME? ISC defence challenges are the fit — procurement contracts with clear problem statements.
- Earlier-stage or research-driven, or you're academia/a non-profit? IDEaS Competitive Projects funds from TRL 1 and takes a wider range of applicants.
- Either way, the work is dual-use? Pair it with NRC IRAP's new DI Assist stream and SR&ED — without double-counting assistance.
Current defence challenges
Challenges open and close on tight windows, and DND runs them in recurring rounds. Recent and open examples:
- MINERVA Initiative — UAS Deconfliction ($500K, ISC)
- MINERVA Initiative — Cargo/Munition Drop UAS ($500K, ISC)
- Sustainable Northern Operations: Water & Waste (up to $6.75M, IDEaS)
- Space: LEO Satellite Communication in Contested Environments ($2M, ISC)
Frequently asked questions
What is the difference between ISC and IDEaS?
ISC (Innovative Solutions Canada) runs procurement-style challenges with fixed funding and deadlines, aimed at Canadian SMEs with near-market solutions (TRL 5–9). IDEaS is DND's own innovation program, funding earlier-stage defence R&D (from TRL 1) across a broader set of applicants, up to $6.75M per project.
How much defence funding can a Canadian company get?
ISC Phase 1 is up to $150K and Phase 2 up to $1M (DND's MINERVA/space challenges use elevated $500K–$2M Phase-2-only caps). IDEaS Competitive Projects can total up to $6.75M across TRL-gated phases.
Who is eligible for ISC defence challenges?
A for-profit Canadian-incorporated business with 499 or fewer full-time employees, performing R&D in Canada, with at least 50% of wages, employees, and senior executives Canadian-based, and a solution at TRL 5–9.
Do I keep my IP?
Yes. Under Innovative Solutions Canada, innovators retain the intellectual property they develop.
Have a defence or dual-use technology?
We help Canadian companies pick the right defence door — ISC or IDEaS — frame the proposal against the challenge criteria, and stack it with DI Assist and SR&ED.
Book a free 30-minute consult →