Webinar featuring Clem Srour | Canada’s ITB Policy & Innovation
The Government of Canada’s Industrial and Technological Benefits (ITB) Policy is one of their most long‑term and strategically oriented tools for supporting our economy. It requires defence and coast guard contract winners – known as prime contractors – to reinvest the awarded value back into Canadian business activity.
As Canada’s defence and innovation landscape evolves, the ITB framework is becoming a more attractive pathway for organizations seeking growth.
Most organizations are not directly involved in ITB. However, they can still benefit indirectly through strategic alignment. Programs like Strix’s Initiative for Sustainable Aviation Technology (INSAT) provide opportunities to work on projects that meet prime contractor’s obligations.
To examine how businesses can position themselves within defence at this time, Strix hosted a webinar on January 20, 2026. Dedicated to supporting innovation in its community, the non-profit facilitates collaboration and supports project development.
Led by Walter Chan, Strix’s Chief Strategy and Business Officer, the session featured Clem Srour, Managing Director of Tridus Strategies. Experience-driven advice offered a practical outlook of the policy by leveraging insights from both sides of the ITB equation. Among his accomplishments, when Clem worked at Innovation, Science and Economic Development Canada (ISED), he led complex benefit files in defence procurement such as the Future Fighter Capability Project. His knowledge was invaluable, and it complemented Walter’s own decade of ITB contracts on both the contractor and recipient side.
What to consider before exploring the ITB framework
During the webinar, Clem addressed a common misconception: the ITB framework is not a “big pot of money” for the taking. In fact, prime contractors manage their obligations very carefully to ensure proper compliance. For organizations engaging indirectly, success depends less on the volume of available obligations and more on how well their capabilities align with prime contractor needs. The framework cannot be used as an easy or stand-alone point of entry into defence.
Which organizations are best positioned to leverage ITBs
The experts reaffirmed that ITBs are not limited to traditional defence firms. Organizations outside the core defence sector – particularly those developing dual‑use technologies – can use various initiatives to find a pathway into the ecosystem. Early collaboration with Tier 1 suppliers or original equipment manufacturers (OEMs) should be prioritized, though. Walter believes that when you innovate together, it becomes natural to bring you on board for long oriented projects.
How to connect in the ITB ecosystem
Organizations were encouraged to determine a prime contractors’ network and request meetings with parties of interest at industry events. This approach eliminates unexpected delays in response times from the high-volume of inquiries. Not to mention, in-person organizational representatives can build stronger relationships.
When to engage with relevant stakeholders
Organizations that are still preparing to become ITB-ready do not have to worry about a fixed cut-off date in which opportunities disappear. Engagement does not end once a contract is won, Clem explained. Many obligations tied to major procurements are still being fulfilled over long timelines, and significant capital remains available throughout that period.
Transactions to consider when getting started
Between the different types of transactions, consortium‑based transactions were highlighted for their potential to generate significant credit multipliers. These transactions can reach at least five times the transaction value. Capital venture transactions were also discussed, but Clem noted limitations. Due to the collaborative nature of the framework, passive investments are often less appealing to prime contractors than projects that allow for direct engagement, shared risk, and long-term industrial integration.
Ultimately, which transactions make sense for an organization will depend on their work. There is not a universal approach, and each organization must weigh their options based on compatibility.
The biggest takeaway: Prepare early and compete with purpose
Taking in the overall messages from the webinar, it’s clear that in the ITB framework, preparation, patience, and purpose is not optimal –it’s foundational. Organizations that invest early in understanding where they fit, building credible capabilities, and aligning with prime contractor needs are best positioned to participate as developments emerge over time.