Industrial and Technological Benefits (ITB) Program

The Industrial and Technological Benefits (ITB) Program is a key government initiative that aims to create economic benefits for Canada by leveraging procurement to generate business opportunities and advance the development of domestic capabilities in key industrial sectors.

The Industrial and Technological Benefits (ITB) Program is a key initiative of the Canadian government aimed at creating economic benefits for Canada through leveraging procurement to generate business opportunities and advance the development of domestic capabilities in key industrial sectors. The program was introduced in 2014 as a replacement for the Industrial and Regional Benefits (IRB) Program, which had been in place since the 1980s.

The main objectives of the ITB Program are to create high-quality jobs, promote innovation and economic growth, enhance Canada’s industrial and technological capabilities, and generate benefits for Canadian firms, research institutions, and communities. These objectives are achieved through the implementation of the ITB Policy, which requires suppliers to undertake business activities in Canada that are equivalent in value to the procurement contract.

Under the ITB Policy, suppliers are required to identify and execute business activities in Canada that will generate economic benefits to the country, such as investments in research and development, technology transfer, commercialization, and the creation of jobs. These activities must be directly related to the procurement contract and must be undertaken within a specified timeframe, which varies depending on the value of the contract.

The ITB Program applies to a wide range of procurement contracts, including those related to defence, security, and major infrastructure projects. The program has been successful in generating economic benefits for Canada, including the creation of high-quality jobs, the development of innovative technologies and products, and the expansion of the country’s industrial and technological capabilities.

In summary, the ITB Program is a key government initiative that aims to create economic benefits for Canada by leveraging procurement to generate business opportunities and advance the development of domestic capabilities in key industrial sectors. The program is aligned with the government’s broader economic objectives and has been successful in generating tangible benefits for the country.

The eligibility criteria for the Industrial and Technological Benefits (ITB) Program vary depending on the procurement contract and the specific requirements of the contracting authority. However, generally, any supplier who wishes to participate in the program must meet the following criteria:.

1. Legal entity: The supplier must be a legal entity authorized to conduct business in Canada and have a valid Business Number (BN) issued by the Canada Revenue Agency.

2. Compliance: The supplier must comply with all applicable laws, regulations, and policies in Canada, including those related to labour standards, health and safety, environment, and ethics.

3. Financial capacity: The supplier must have the financial capacity to undertake the business activities required under the ITB Policy, which may include investments in research and development, technology transfer, commercialization, and the creation of jobs.

4. Industrial and technological capabilities: The supplier must have the necessary industrial and technological capabilities to undertake the business activities required under the ITB Policy, which may include expertise in areas such as engineering, manufacturing, and information technology.

5. Canadian content: The supplier must demonstrate a commitment to Canadian content and must undertake business activities in Canada that are equivalent in value to the procurement contract.

6. Reporting: The supplier must provide regular reports to the contracting authority on the ITB activities’ progress and the economic benefits generated for Canada.

It is important to note that the specific eligibility criteria may vary depending on the contracting authority and the procurement contract. Suppliers should carefully review the requirements of each contract and ensure that they meet all eligibility criteria before submitting a bid.

As part of the Industrial and Technological Benefits (ITB) Policy, companies bidding on major defence contracts in Canada are required to submit a Value Proposition outlining their plans for generating economic benefits in the country. The Value Proposition is assessed alongside technical and cost requirements, with the weight and rating varying depending on the procurement contract.

Innovation, Science and Economic Development Canada (ISED) determine the economic benefit requirements for each Value Proposition on a procurement-by-procurement basis. These requirements are developed through market analysis and industry engagement and are based on evidence of potential economic benefits. Typically, ISED seeks investments across five main areas or “pillars” listed below within the Value Proposition: research and development, supplier development, exports, skills and training, and investment in communities.

The Key Industrial Capabilities (KICs) are a critical component of the Industrial and Technological Benefits (ITB) Policy in Canada, aimed at driving innovation, exports, and growth in firms involved in defence procurements. Under this policy, winning bidders for defence and major Canadian Coast Guard contracts are required to undertake business activities in Canada that are equivalent in value to the contract. This can include investing in research and development, skills development, and purchasing goods and services from Canadian suppliers.

To ensure that these activities continue to support the development of a globally-competitive defence and security sector, the Government of Canada has identified 17 KICs. These KICs are areas of emerging technology with significant growth potential, established capabilities where Canada is globally competitive, and areas where domestic capacity is essential for national security. They encompass the skills, technologies, and supply chains required to support the growth of these capabilities and go beyond the companies involved in the end solution. The KICs were identified through extensive analysis and engagement with industry and other stakeholders, and are aligned with Canada’s defence policy, Strong Secure, Engaged, and other important government policies.

If you are interested in getting involved with the Industrial and Technological Benefits (ITB) Program, there are several ways Vectors Engineering can help you.

One way to contribute is by providing technology analysis and expertise to help identify areas of emerging technology and market opportunities. By conducting technology assessments and market analysis, we can help identify areas where your company can build on existing capabilities and develop new technologies aligned with the ITB Program’s objectives.

Another way to contribute is by matching your firm and technology with existing and future prime contractors (obligors). This can involve identifying potential partnerships and collaborations between firms to help them participate in procurement opportunities and meet the ITB requirements. By facilitating partnerships and collaborations between your firm and other Canadian Small to Medium-sized Businesses (SMBs), universities, and other academic institutions, we can help promote your innovation and competitiveness in key industrial sectors and enhance your technological capabilities.

Overall, by leveraging our technology analysis expertise and matching capabilities, Vectors Engineering can help support your growth and fund development objectives and generate economic benefits for your firm.