Canada and other members of the North Atlantic Treaty Organization (NATO) are facing higher defence-spending targets in response to growing geopolitical tensions. The North American Treaty Organization’s 2025 Hague Summit Declaration requires member states to increase their defence spending to five percent of their GDP by 2035. In recognition of the increasing importance of dual-use technologies that combine both civilian and military applications, this five percent commitment is divided between core defence investments (3.5 percent) and innovation and industrial development (1.5 percent). This paper looks at how Canada can meet this target through a whole-of-government approach, focusing on four key paths: research and development funding; joint dual-use initiatives; commercialization support; and intellectual property strategy and research security.
