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Title page 1

Contents 4

About the Authors 5

Acronyms and Abbreviations 6

Executive Summary 7

Introduction 7

Rising Defence Spending 8

Defence Spending in Canada 10

Dual-Use Technologies and the Changing Public-Private Relationship 13

Canada's Quantum Sector and the Road to Five Percent 15

Modernization: Defence Spending to Strengthen Economic Growth and Defence Effectiveness 19

Conclusion 21

Acknowledgement 23

Works Cited 23

Tables 10

Table 1. NATO Defence-Spending Categories 10

Table 2. Canadian Defence Spending, 2021-2024 11

Table 3. Alignment of NQS Pillars with NATO Five Percent Categories 18

Table 4. Alignment of Policy Proposals with NATO Five Percent Categories 21

Figures 12

Figure 1. Canada's Defence Spending (Past and Projected) 12

Figure 2. International Comparison of R&D Spending as a Percentage of GDP 14

Figure 3. Canadian Trend in R&D as a Percentage of GDP 15

Boxes 16

Box 1. Confronting the Risks of Growing Private Sector Influence 16

Box 2. Case Study - Quantum Benchmarking, DARPA and Canadian Technological Sovereignty 22