Industrial and Technological Benefits (ITB) Policy – ISED Presentation December 1, 2025

This video outlines the evolution and current framework of Canada’s Industrial and Technological Benefits (ITB) Policy, which mandates that successful bidders for major defence contracts reinvest funds back into the Canadian economy. Administered by Innovation, Science and Economic Development Canada (ISED), the policy has transitioned from earlier offset models to a system that prioritizes high-value economic outcomes and Key Industrial Capabilities. Bidders are evaluated based on their Value Proposition, with specific requirements to support small and medium businesses and foster innovation in sectors like artificial intelligence, aerospace, and clean technology. To ensure compliance, the government utilizes strict eligibility criteria such as causality and incrementality while providing multipliers for strategic investments in research and development. Overall, the policy functions as a strategic economic lever designed to bolster domestic industry through multi-billion dollar federal procurement obligations.