Sovereignty Through Innovation: Why Canada Must Lead the Next Era of Defence Technology

After years of deploying AI-based cybersecurity and fraud detection systems across global markets — from London and New York to Silicon Valley, Hong Kong, and the Middle East — I saw firsthand how nations prioritize sovereign control over their critical technologies when it comes to venture investments and dual-use technologies.

Conversations with members of the Canadian Armed Forces brought this reality closer to home: Canada risks losing influence in critical defence alliances — not because our people lack skill or commitment, but because we are not consistently bringing sovereign innovation to the table.

As the geopolitical landscape shifts and software-defined warfare becomes the norm, Canada faces a pivotal choice — continue depending on foreign technologies, or build sovereign AI capabilities that secure our place among global defence leaders.

The Alliance Dilemma

A couple of years ago, I had eye-opening conversations with members of the Canadian Armed Forces who shared a troubling reality. In their words, Canada was being asked to “stand outside” of important meetings because we weren’t contributing anything significant. One officer shared a tough truth with me: “We’re often perceived as not bringing significant funding, innovation, or operational advantage to the table.”

This exclusion from alliances like the AUKUS and Quad isn’t just about prestige; it’s about national security and technological sovereignty. Nobody’s looking to us from a defence solution perspective anymore. I’ve seen firsthand how this impacts Canada’s influence at international tables.

The reality is harsh but clear: buying billions of dollars worth of foreign equipment doesn’t earn respect or inclusion. As one former defence official put it to me, “Nobody’s going to respect you if you go buy billions of dollars worth of stuff and say, now you need to respect us and make us part of the alliance.”

The Evolving Threat Landscape

The cyber threat landscape has intensified dramatically, with the Canadian Centre for Cyber Security responding to 2,192 cyber incidents affecting government and critical infrastructure in 2023-24 alone.

Ukraine offers powerful lessons about the changing nature of warfare. The battlefield has become software-defined, with threats evolving at the speed of code rather than hardware. U.S. companies deployed there discovered that all the technologies they built for electronic warfare were decades old — hardware-based systems that couldn’t keep pace with software-defined threats.

I’ve seen this firsthand in our work. After the Cold War, few nations prioritized updating their electronic warfare capabilities significantly. It was always about improving hardware accuracy and precision. But now we’re in a software-defined battlefield where threats can be reprogrammed instantly. When you’re operating hardware-oriented equipment against adversaries who can continuously change waveforms through software, you’re perpetually behind the threat curve.

The Sovereignty Imperative

The COVID-19 pandemic painfully demonstrated what happens when a country loses control of critical supply chains. Suddenly, we couldn’t produce essential items like masks and vaccines. We found ourselves waiting in line behind other nations, dependent on their priorities and timelines.

Defence technology follows the same principle. When we purchase equipment with foreign intellectual property, we can’t deploy or modify it without permission from the original developer. This creates a fundamental vulnerability in our security posture.

Building sovereign AI capabilities is essential for protecting Canada’s interests, particularly in the Arctic — a region warming four times faster than the global average and increasingly contested by Russia and China. The updated defence policy “Our North, Strong and Free” recognizes this reality with an additional $8.1 billion over five years for Arctic and northern security.

Unlocking Canada’s Indigenous Innovation Advantage

Canada possesses extraordinary talent in defence innovation, with world-class expertise in AI, cybersecurity, and advanced sensor technologies. Initiatives like IDEaS and the Pathway to Commercialization demonstrate a strong commitment by the Department of National Defence to foster innovation.

However, challenges remain in fully unlocking this potential. Procurement models often place small, emerging innovators and large established primes into the same competitive streams, making it difficult for new technologies to break through at scale. Enhancing transparency, strategic separation, and tailored support for emerging capabilities could further strengthen Canada’s defence innovation ecosystem.

Other nations have shown how sustained focus can shift outcomes. For example, national policies that prioritize local intellectual property development — even when early-stage solutions carry higher risk or cost — have enabled countries to build sovereign capabilities and reduce dependency over time.

Canada has an opportunity to pursue a similar path: investing early, building domestic IP strength, and scaling sovereign technologies critical to our future security.

The Zighra Approach: Building Sovereign Capabilities

At Zighra, we’re focused on helping Canada dominate in cyber and electronic warfare domains — the frontlines of modern conflicts. As AI transforms the threat landscape, our adversaries are using it to enhance attacks. Two-thirds (65%) of Canadian businesses are already concerned that AI will make cyber attacks harder to defend against, a fear shared by security experts who note AI has made attacks “easier to automate and harder to detect.”

We’ve built our AI platform from the ground up, developing intellectual property that provides sovereign capability in threat detection. This approach is essential in environments like the Arctic, where harsh conditions make persistent human presence difficult and communication links unreliable.

A Future-Ready Defence Posture

For Canada to lead in defence technology, policymakers need to enable defence organizations to take calculated risks with Canadian technology. The recent trend toward rapid procurement shows this is possible — in February 2024, Canada fast-tracked $227.5 million for short-range air defence systems and $46 million for counter-drone equipment on accelerated timelines.

But we need to apply this same agility to procuring from Canadian innovators. Important steps have already been taken—from NORAD modernization efforts to the launch of Canada’s $2.49 billion drone program. However, with first deliveries expected only by 2028 and full operational capability not until 2033, we must complement these initiatives by investing in domestic technologies that can be deployed and improved iteratively, starting now.

By prioritizing procurement from Canadian companies with proven intellectual property, we can build a robust defence industrial base while addressing our specific security requirements.

Sovereign innovation doesn’t weaken alliances. It strengthens them. When Canada brings trusted, explainable, and homegrown technologies to the table, we increase the resilience of collective defence — rather than creating dependencies. Notably, the United States has allocated $14 billion in 2025 for the adoption of artificial intelligence and the expansion of low-cost weapons production. Meanwhile, the United Kingdom has committed to spending a minimum of 10% of the Ministry of Defence’s equipment procurement budget on novel technologies, including drones and AI capabilities. Canada must make similar investments in our own capabilities rather than simply purchasing from allies.

Time for Canadian Leadership

The opportunity before us is clear: by applying first principles thinking to our unique defence challenges, we can develop capabilities others haven’t considered. Canada can earn its place at international tables not through spending alone but through genuine technological contribution.

When Canada brings innovative solutions to global security challenges, our voice strengthens and our sovereignty becomes more secure.

If Canada wants to lead — not follow — we must act now.

Sovereignty through innovation is no longer optional. It is our pathway to resilience, relevance, and leadership on the world stage.

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