National Research Council Canada's 2026–27 Departmental Plan

Through research focused on advancing priority areas, the NRC is helping unlock new opportunities for Canada and the global community. The NRC's exploratory work empowers partners with the tools and expertise to push the boundaries of knowledge and innovation.

Results we plan to achieve

In 2026 to 2027, the NRC will advance research and innovation in fields that shape Canada's security, prosperity and sustainability. Guided by its 2024 to 2029 strategic plan, the NRC's work will focus on priority areas, which include defence, digital and quantum technologies, health and biomanufacturing, and measurement science and astronomy. This work will strengthen Canada's innovation ecosystem and translate discoveries into practical applications that address national security, economic, environmental and health priorities.

Mobilizing Canada's innovation network for defence and security

As global security challenges intensify and Canada accelerates investments to meet the NATO commitment to invest 2% of GDP in defence, the NRC is advancing the scientific and technological capabilities that underpin this transformation.

In 2026 to 2027, the NRC will align research and innovation priorities with those of the Department of National Defence (DND), the Canadian Armed Forces (CAF), Defence Research and Development Canada (DRDC), Innovation, Science and Economic Development Canada (ISED) and other strategic partners. The focus will be on advancing dual-use technologies, strengthening domestic supply chains and accelerating the transition of innovation from concept to deployment.

As part of the government's proposed Defence Industrial Strategy, the NRC will contribute to rebuilding domestic production capacity, driving defence innovation and strengthening supply chains across key technology sectors to create opportunities for Canadian businesses. As part of this effort, the NRC will partner with DND, ISED and the Communications Security Establishment to establish the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS). Through this new initiative, the NRC will collaborate with partners to advance next-generation technologies, foster industrial participation and accelerate the translation of emerging research into deployable defence capabilities.

The NRC will contribute to the proposed Defence Industrial Strategy through its work on autonomous systems, drone and counter-drone technologies, and next-generation propulsion to help strengthen Canada's role within NATO. In partnership with DND, DRDC, industry and academia, the NRC will lead a collaborative initiative to establish a national Drone Innovation Hub to support the acceleration of defence industrial innovation in Unmanned Aircraft Systems technologies. The Drone Innovation Hub will establish a coordinated national ecosystem that connects government, industry and academia to advance drone and counter-drone technologies and help equip the CAF in a key area of modern warfare. The NRC will also deploy the Advanced Defence Airborne Science and Technology Research Accelerator (AD ASTRA), an advanced airborne platform to serve as a cornerstone for advancing innovation and airborne defence capability development within Canada's ecosystem through cutting-edge research, testing and demonstration of emerging technologies.

Through collaborations such as the Icebreaker Collaboration Effort—a joint memorandum of understanding between Canada, the United States and Finland—the NRC will continue advancing technologies that improve the performance, safety and sustainability of Arctic fleets.

The NRC's other key initiatives are described in greater detail in domain-specific sections below. These coordinated efforts with strategic partners will help strengthen Canada's technological sovereignty, enhance readiness and resilience across the defence sector, and enable Canadian innovators to play a central role in developing the capabilities that protect national interests.

Breaking new ground in quantum science technologies

Quantum science has transformative applications in defence, health care, environmental monitoring and manufacturing that could significantly impact Canada's economy and society. Building on its long-standing leadership, the NRC will accelerate the translation of quantum research into technologies that help protect Canadians and deliver economic and societal value while advancing the objectives of Canada's National Quantum Strategy.

In 2026 to 2027, the NRC's quantum research will focus on:

• Advancing quantum sensing, computing and networking technologies that extend the limits of classical physics and prepare Canada for the next generation of quantum-enabled solutions. This work will strengthen national capabilities in health technologies, artificial intelligence and cybersecurity, supporting technological sovereignty and operational readiness. As part of this effort, the NRC will also begin a new Challenge program in quantum-safe technologies under the Defence Industrial Strategy, focused on protecting critical encryption systems from the risks posed by increasingly powerful quantum computation.
• Leveraging the NRC's semiconductor fabrication infrastructure and related expertise to enable the development of dual-use quantum technologies that reinforce Canada's leadership in global quantum innovation.
• Launching the National Metrology Institute Quantum Initiative in partnership with international organizations. This initiative will establish new quantum measurement standards and training programs, expand collaboration with Quantum Industry Canada and the Standards Council of Canada, and build next-generation precision-measurement infrastructure for quantum-enabled applications.
• Developing compact, high-sensitivity quantum sensors for real-world use, in collaboration with academic, industry and international partners. These sensors will combine quantum and data-driven methods to improve health and environmental monitoring, enabling early disease detection, precision navigation and advanced environmental observation, while creating new opportunities for commercialization and industrial adoption.
• Advancing quantum computing by developing algorithms, simulations and software that leverage emerging quantum systems accessible through cloud platforms. Research will focus on improving reliability, enhancing modelling efficiency and applying quantum methods to complex challenges in science, engineering and national security. A new thematic program with the Fields Institute and Defence Research and Development Canada (DRDC) will explore mathematical problems where quantum computing can provide breakthroughs in logistics optimization and cryptographic resilience.
• Scaling quantum networking and secure communication technologies through the Quantum Internetworking Challenge program, which will develop and integrate systems capable of transmitting quantum information securely over long distances. Experimental testbeds will be used to reduce technical risks, validate performance and inform the development of international standards for quantum networking.

Together, these initiatives will strengthen Canada's leadership in quantum science, accelerate commercialization opportunities for Canadian firms and enhance national security and economic resilience in a rapidly evolving global market.

Strengthening Canada's biomanufacturing and life sciences leadership

In 2026 to 2027, the NRC will strengthen Canada's biomanufacturing and life sciences capacity by linking early-stage research with large-scale production. These efforts will accelerate the development of new vaccines, therapies and diagnostic technologies while building the national capability to respond quickly to public health challenges. The goal is to enhance Canada's health security, improve the affordability of care and reinforce readiness for future emergencies.

Working with defence and public-health partners, the NRC will accelerate the development of medical countermeasures such as field-deployable diagnostics, vaccines and therapeutics to protect again biological threats. These innovations will have dual benefit, enhancing both civilian health security and national defence readiness.

To advance biomanufacturing and biologics development, the NRC will continue bridging research and production through its clinical trial material facility (CTMF) and collaboration with the Biologics Manufacturing Centre (BMC) Inc. Planned initiatives include a pilot project demonstrating a gene-to-batch R&D scale-up process for rapid antibody manufacturing, followed by transfer to GMP facilities including the CTMF and the BMC. The NRC will also produce a made-in-Canada therapeutic antibody, marking the transition of research into clinical-grade production and supporting a resilient domestic supply chain.

Through Project forWARD, a whole-of-government initiative led by Health Canada, the NRC will work with the Canadian Institutes of Health Research, Innovation, Science and Economic Development Canada and the Canadian Drug Agency to support the establishment of a national platform for developing and delivering viral vector-based gene therapies for rare diseases. Building on previous planning and stakeholder engagement, upcoming work in 2026 to 2027 will focus on pilot project design, cost analysis and the creation of governance and partnership models that could support long-term clinical and commercial adoption.

The NRC will broaden engagement with universities, clinical networks and industry to drive innovation in biologics and diagnostics. Researchers will combine lab-on-a-chip technologies, artificial intelligence and data analytics to develop faster, more accurate diagnostic tools for infections such as sepsis and antibiotic resistance. These advances will improve early detection and response to health threats while supporting domestic production of next-generation medical technologies.

Building on its participation in the Canada Biomedical Research Fund, the NRC will deepen collaboration with research hubs across the country to accelerate vaccine and biologics platform development. The new Polytechnique Montréal collaboration centre at the NRC's Royalmount campus will expand training opportunities, research integration and biomanufacturing research and development, helping develop the next generation of Canadian life sciences talent.

The NRC will also advance innovative technologies that increase Canada's food productivity by enabling the full, sustainable use of agricultural and marine bioresources for value added products. To support this work, the NRC will use its atypical precision fermentation scale-up capacity as an innovative biomanufacturing platform, helping clients develop and commercialize new products in this growing sector.

Collectively, these initiatives will position Canada as a global leader in biomanufacturing and life sciences by translating discoveries into accessible, affordable and domestically produced health solutions that enhance national security and strengthen resilience to future biological and environmental challenges.

Advancing measurement science and standards

Trusted measurement standards underpin innovation, trade and regulation. As Canada's national authority on measurement science, the NRC provides the standards and tools that enable new technologies to be accurate, reliable and ready for real-world use. In 2026 to 2027, the NRC will advance measurement science and create new standards that support Canadian defence priorities and accelerate the safe adoption of emerging technologies, including:

• Quantum technologies: The NRC will work with partners in Canada and abroad towards establishing standards for quantum sensors, computers and communication systems, enabling Canadian companies to commercialize quantum technologies and help protect Canadian national security and prosperity. The NRC will also contribute to the international effort to redefine the SI second, the global standard for time measurement, by sharing data from the NRC's precision optical clocks. This will improve the accuracy of global timekeeping systems that support navigation, telecommunications and scientific research.
• Clean energy and transportation: Complete testing of a new calibration system for measuring direct-current power in electric-vehicle (EV) charging stations. This will enable the next-generation fast-charging systems to be safe, efficient and compatible across Canada's growing EV network.
• Environmental measurement science: Launch Canada's first reference material for detecting and quantifying nanoplastics in water, food and other materials. This will provide a benchmark for researchers and regulators to better measure and reduce plastic pollution.

The NRC will also modernize how measurements are developed and shared through digital innovation. Building on its "digital shadow" for liquid chromatography, researchers will expand this approach to a full liquid chromatography–mass spectrometry system. This virtual model will allow scientists to simulate and refine measurement processes before conducting physical experiments, improving accuracy and reducing time and cost. The NRC will also contribute to the development of international standards for digital metrology so Canadian data and practices remain interoperable and trusted worldwide.

Through this work, the NRC will strengthen Canada's leadership in measurement science and provide reliable standards that industry, regulators and innovators depend on. These efforts will help Canadians benefit from safer products, cleaner technologies and more trustworthy data in an increasingly digital and interconnected world.

Building Canada's astronomy and big-science capacity

World-class astronomical facilities are vital to maintaining Canada's leadership in astronomy and astrophysics. They enable discoveries that deepen our understanding of the universe while driving innovation in optics, instrumentation and data science with applications beyond astronomy. In 2026 to 2027, the NRC will continue providing Canadian researchers with access to leading observatories, technical expertise and advanced data management tools, so they can fully participate in and benefit from international collaborations and major discoveries.

The NRC will sustain operations and upgrades across its national astronomical infrastructure and contribute to global projects that expand Canada's scientific reach. Modernization work at the Dominion Radio Astrophysical Observatory in Penticton will include upgrades to the Synthesis Telescope Array to enhance sensitivity, data quality and observational precision, strengthening Canada's capacity in radio astronomy and related technologies.

Through the Canadian-led CHORD pathfinder array, the NRC and its partners will continue advancing wide-field radio astronomy. As additional dishes are deployed and operations begin, CHORD will offer new insights into the dynamic radio sky and support end-to-end testing of data-processing systems that will inform the design of future large-scale observatories.

As part of Canada's participation in the building of the 2 largest telescope arrays in the world under the Square Kilometre Array Observatory, the NRC will expand national engagement through a growing network of researchers and technical experts. Building on its strengths in radio-receiver design and system engineering, the NRC will complete a prototype that will improve resolution and sensitivity for telescopes such as the Next Generation Very Large Array. These developments will support research on planetary formation, stellar evolution and galactic origins, reinforcing Canada's role in major international astronomy collaborations.

The NRC will pursue opportunities in high-resolution optical imaging and space-based observation systems, developing technologies that extend Canada's contribution to global astronomy missions while creating opportunities for industrial applications in imaging, photonics and advanced manufacturing. Collaborations with academia and industry will enable innovations emerging from astronomy, such as precision optics and data-analysis methods, to be transferred to other sectors, supporting cross-industry applications and economic growth. Together, these efforts will equip Canadian astronomers and astrophysicists with the tools, infrastructure and expertise needed to remain at the forefront of global discovery.

The NRC supports business innovation and industry development in Canada by combining research and development, advisory services, funding and partnerships with Canadian industry and international collaborators. Through access to cutting-edge expertise, facilities and technical resources, the NRC helps businesses turn ideas into market-ready solutions, strengthen their capabilities and compete in global markets and value chains.

Results we plan to achieve

In 2026 to 2027, the NRC will continue modernizing how it organizes, delivers and connects its research and business functions to better serve Canadian industry and innovation partners and support Canada's innovative businesses to pivot into defence and dual-use applications and build a strong and sustainable defence sector in Canada. This evolution will strengthen collaboration across research centres, business development, NRC IRAP and international partnerships to create a more unified approach that accelerates the translation of research and innovation into real-world impact. By streamlining organizational structures, improving coordination and aligning expertise around high-impact areas such as defence, emerging technologies, advanced manufacturing and clean technology, the NRC will be better positioned to deliver targeted support and measurable results for Canada's economy.

Supporting Canadian industry development

NRC IRAP has been a cornerstone in Canada's innovation ecosystem, delivering expert guidance and strategic support to over 10,000 Canadian SMEs. Building on its track record of trusted advisory services, NRC IRAP will continue to strengthen networks, foster new connections and provide funding to help high potential SMEs expand their innovation and technological capacity, and bring ideas to market.

In 2026 to 2027, NRC IRAP will continue to deliver tailored support to Canadian SMEs through its various programming streams, in areas such as intellectual property, AI, clean technology, cyber security and international co-innovation. The program will also play an important role in supporting the development of Canada's defence industrial capacity, providing expertise and funding to help Canadian companies develop and scale dual-use technologies that strengthen national capability and competitiveness. As part of this effort, NRC IRAP will deliver the Defence Industry Assist (DIA) initiative, a new program supporting high-potential Canadian SMEs in developing cutting-edge technologies for both civilian and defence applications. DIA will help firms scale operations to meet the immediate needs of the Canadian Armed Forces while building a sustainable industrial foundation for future growth.

NRC IRAP Clean Technology programming will continue in its second year in 2026 to 2027, offering funding to Canadian SMEs that are developing innovative clean technologies with environmental and economic impact, with a focus on greenhouse gas reductions.

To provide a more integrated and coordinated approach to innovation, the NRC launched its new Industry and Innovation Division in October 2025. Built around NRC IRAP and NRC expertise in business development, collaborative programming and international engagement, the division will enhance collaboration and alignment across NRC initiatives. In 2026 to 2027, the NRC will play a key role in advancing this goal by promoting greater coordination in SME support and maximizing the overall impact of NRC programs on Canada's economic growth.

Strengthening partnerships and expanding collaborative programs

In 2026 to 2027, the NRC will strengthen its role as a connector and catalyst within Canada's innovation ecosystem by expanding collaborative platforms and deepening partnerships in Canada and abroad. As 8 Challenge programs reach completion, the NRC will launch 3 new, mission-driven initiatives focused on key growth areas, including zero emission transportation, quantum communications and artificial intelligence for productivity. Together with NRC IRAP and its international innovation networks, these programs will create new opportunities for Canadian innovators, particularly SMEs, to collaborate, access expertise and compete successfully in global markets.

The Collaborative Science, Technology and Innovation Program (CSTIP) will remain a cornerstone for multi-sector partnerships that bring together researchers, universities, SMEs, governments and Indigenous communities to address national priorities. The 3 new Challenge programs— AI for Productivity, e-Auto and Quantum Internetworking—will accelerate innovation in key growth areas, drawing on national and international co-funding and partnerships, linking Canadian expertise to global research efforts and translating discoveries into measurable economic and social benefits.

The NRC will leverage CSTIP to fund collaborative projects with a focus on the needs and use cases of defence and security partners that enhance Canadian sovereign capabilities. The NRC will leverage existing and new challenge programs to catalyze collaborative, high-risk, high-reward research to develop quantum networking devices for defence and security partners, develop and commercialize quantum sensors to meet defence needs and help mitigate the threat from quantum computers and support the adoption of quantum, AI and digital safe solutions in Canada.

International collaboration will be guided by the new NRC International Strategy , which sets a clear framework for building high-impact partnerships aligned with Canada's research priorities. Building on established collaborations in Europe and Asia, the NRC will broaden its ecosystem approach to connect Canadian researchers and companies with international value chains in areas such as clean technology, advanced manufacturing and semiconductors. Participation in global innovation networks such as Eureka and programs such as Horizon Europe will continue to increase collaborative R&D by opening access to new markets, facilities and research consortia addressing shared global challenges.

Through NRC IRAP, the NRC will expand opportunities for Canadian SMEs to pursue joint research and development with international partners and access new technologies, expertise and business connections. By combining domestic program delivery with targeted international engagement, such as partnership development activities and calls for proposals for co-innovation projects, the NRC will give Canadian innovators the networks, resources and partnerships they need to bring new ideas to market, scale their businesses and strengthen Canada's position in the global research and innovation landscape.

The NRC will also deepen collaboration with Canada's academic community to accelerate discovery and strengthen the talent pipeline that supports national innovation priorities. Through joint research initiatives, shared infrastructure and co-funded projects, the NRC will work with universities and colleges to advance emerging fields such as biomanufacturing, quantum science, artificial intelligence, advanced materials and sustainable construction.

Driving commercialization of Canadian innovations

In 2026 to 2027, the NRC will strengthen its role as a partner of choice for Canadian innovators by helping SMEs access the expertise, facilities and scale needed to turn new technologies into market-ready products. By combining scientific excellence with collaborative approaches, the NRC will accelerate the commercialization of innovations that address Canada's most pressing challenges and contribute to a stronger, more resilient economy.

The NRC will continue advancing its Enterprise Value Chain Framework and 3 strategic value chains: batteries, biologics and quantum sensing. These areas were chosen for their potential to address critical national priorities. By refining the framework in these areas, the NRC will build models that can be expanded to other sectors and strategic projects. This work will help Canada stay ahead in global markets, strengthen its leadership in key technologies, and boost its security and resilience. For Canadians, that means more innovation, stronger industries, good jobs and a safer, more prosperous future.

To maximize the value of public investment in research, the NRC will maintain strong management and strategic deployment of its intellectual property. By aligning patents and proprietary technologies with national R&D priorities, the NRC will enable Canadian companies to license and build on NRC-developed innovations, creating pathways for new products, services and businesses to emerge. This approach will enable breakthroughs in NRC laboratories that translate into tangible economic benefits for Canadians.

The NRC will also implement a new R&D strategy for the manufacturing industry, focusing on areas where Canada can strengthen its competitiveness and resilience. This includes fully optimizing the Industrial Materials Innovation Centre and Aluminium Technology Centre to enhance agility, foster cross-team collaboration and align resources with high-impact sectors such as clean technology, aerospace and defence. By showcasing these centres as national hubs for advanced industrial materials, the NRC will help Canadian firms adopt advanced and dual-use manufacturing technologies, boost productivity and accelerate commercialization.

Through these combined initiatives, the NRC will help move Canadian discoveries efficiently from the lab to the marketplace, support business growth, create high-quality jobs and reinforce Canada's leadership in the industries shaping the future economy.

The NRC advances research and innovation that deliver real benefits for Canadians. By working closely with government, industry and academic partners, the NRC develops practical solutions that address national challenges, from improving Canada's defence capabilities, supporting sustainable, affordable housing, innovating for a sustainable future to improving health and public safety through digital technologies.

Results we plan to achieve

The NRC will support the development of sustainable and affordable housing, support the government's Climate Competitiveness Strategy by driving innovation for a sustainable future and enable health and public safety through diagnostics and data-driven technologies. Through partnerships across government, academia and industry, the NRC will translate scientific discoveries into practical tools, data and technologies that inform policy, regulation and real-world implementation.

Supporting low-cost innovation and productivity enhancements in housing

The NRC will continue to support the acceleration of Canada's housing supply by establishing partnerships with industry to co-develop and de-risk technologies. In 2026 to 2027, the NRC will advance innovation in prefabricated construction, develop playbooks to provide guidance on implementation, and advance digital solutions to optimize construction processes and improve productivity.

The NRC will support the development of standards and toolkits to harmonize processes across the construction and prefabrication value-chain. These efforts will inform the Canadian Board for Harmonized Construction Codes' code development work under its priority on housing supply.

Digital innovation will improve efficiency and reduce environmental impact in low-carbon construction projects. Through iVISION, the NRC will combine AI, computer vision, unmanned aerial vehicle technologies and building-information modelling to create real-time virtual progress-monitoring systems. These tools will reduce delays, improve accuracy and minimize material waste on construction projects, demonstrating how digital integration can advance Canada's climate and infrastructure goals.

The NRC will also leverage digital technologies to drive innovation and productivity in low carbon and affordable construction under the Construction Sector Digitalization and Productivity Challenge program. This includes building information modelling adoption through the alignment of Canadian standards with international information management practices and establishing a common data environment and digital construction platform to enable digital-twin use cases for smarter design, monitoring, and operation of infrastructure and housing assets.

To further improve productivity and support innovation in prefabricated construction, the NRC will initiate work to de‑risk and optimize automation and robotics for prefabricated manufacturing and provide support to regional clusters. These solutions will help empower construction professionals to innovate and choose fit-for-purpose, low-carbon building solutions and advance Canada's construction sector by implementing building information management across the value chain and reduce construction times through the use of modular construction.

Innovating for a sustainable future

Canada's transition to a net-zero, climate-resilient economy depends on research and innovation that connect environmental protection with industrial growth and competitiveness. In 2026 to 2027, the NRC will leverage its multidisciplinary expertise to advance research and technology development that helps the Canadian defence sector, other industries and communities adapt to climate change, reduce greenhouse-gas emissions and seize opportunities in the growing green economy.

Key areas of focus:

• Collaborate with DND, DRDC and industry to advance clean-energy solutions and mobility technologies suited to Canada's geography. Priorities include deployable microgrids for remote operations, interoperable low-carbon fuels, and electrification and hydrogen options for defence vehicles. Research on advanced materials and manufacturing will improve performance and resilience across platforms while strengthening supply-chain security for dual-use components. In partnership with Transport Canada and DRDC, the NRC will also support off-road and Arctic mobility testing to validate low-carbon propulsion systems under extreme conditions.
• Promote low-carbon and climate-resilient agriculture by applying advanced technologies and data-driven approaches to strengthen agricultural resilience and food security. Using simulation modelling, data integration and engineering design, the NRC will accelerate the development of resilient crop varieties and regional production systems. Working with agricultural stakeholders and communities, the NRC will design and validate new tools and biological solutions that enable sustainable production and help controlled-environment agriculture adapt to extreme weather and changing environmental conditions.
• Support to the Government of Canada's National Adaptation Strategy by advancing new research under the NRC's Climate Resilient Built Environment (CRBE) initiative. This will include projects to prevent overheating and the impacts of wildfire smoke, advancing new Canadian standards on wildland urban interface design and developing provisions to consider the effects of extreme weather events such as flooding, wind and wildfire on the safety of bridge structures. The NRC will also continue advancing nature-based solutions to coastal and flood protection for climate adaptation that reduce erosion risks and enhance ecosystem health. Building on the first Canadian guideline for riverine nature-based solutions published in 2024, an updated edition will be released through the CRBE initiative to expand the understanding of how wetlands, dunes and marshes can complement engineered infrastructure while offering sustainable, adaptable and cost-effective protection for communities across the country.
• Support the Canadian Board for Harmonized Construction Codes in its work to develop code changes to consider permafrost, high-winds, flooding and potentially wildland urban interface and durability for consideration in the 2030 edition of the National Model Codes. The NRC will continue to work with different levels of government and industry to leverage resiliency tools and technologies that support climate adaptation.
• Advance low carbon construction under the Low Carbon Built Environment Challenge program across the entire Canadian construction industry. Working with industry, academia, governments and other stakeholders, the NRC will support the development and use of low carbon materials and systems and improved approaches to operations and maintenance. The program will also support the development of carbon accounting, decision support methodologies and low-carbon construction materials, designs and systems that will minimize, and ultimately eliminate, the life-cycle carbon emissions of buildings and infrastructure.
• Strengthen Canada's zero-emission vehicle supply chain through programs such as the e-Auto Challenge program. The NRC will help advance research on next-generation batteries, lightweight materials and safe charging infrastructure, including rare-earth-reduced motor designs, improved manufacturing processes and composites that extend range and lower emissions. As part of the NRC's e-Auto strategy, the organization is also advancing the Southern Ontario Innovation Hub, a new initiative designed to bring together leading academic partners, industry and NRC expertise to accelerate EV innovation and develop a strong talent pipeline. In collaboration with Transport Canada and Infrastructure Canada, the NRC will further support the sector by developing safety guidelines for battery-electric buses and exploring low-emission propulsion retrofits for rail applications.
• Build on Canada's leadership in sustainable flight by advancing hybrid-electric and hydrogen propulsion technologies. The NRC's work will include testing new algorithms for battery performance and studying hydrogen combustion for next-generation turbine engines. The NRC will also support the growth of advanced air mobility by developing autonomous flight and counter-drone technologies and by providing technical guidance to federal departments on safety and regulatory frameworks.
• Support the growth of sustainable, high-impact industries by developing next-generation battery materials, improving recycling processes and increasing efficiency across the clean energy value chain. Through its national innovation hubs, the NRC will provide research and innovation support to Canadian companies in sectors such as aerospace, automotive, energy and defence, helping improve performance, reduce waste and boost productivity. The NRC will also enhance international collaboration to advance Canadian mid stream battery processing and recycling technologies under the Canada and Germany 3+2 collaborative projects for the Critical Battery Material Initiative, connecting Canadian SMEs and enhancing international collaboration with key markets such as the United States, the European Union and Asia.
• Launch the Waste2Carbon initiative, which is developing a pilot-scale process to turn hard-to-recycle plastics and other waste materials into high-value carbon-based products such as eco-charcoal and graphite precursors. The NRC will also highlight its industrial research groups, including METALTec, Surftec and Sigblow, to attract new collaborators and promote technology transfer to Canadian industry.

These initiatives will bring together advances in digital modelling, materials science and environmental engineering to strengthen the resilience of Canada's buildings, infrastructure and ecosystems. By embedding sustainability across its research programs and deepening collaboration with government, academic and industry partners, the NRC will support the development of a competitive economy that meets environmental standards and public safety requirements. The NRC's efforts will enable innovation to continue driving climate resilience and shared prosperity for all Canadians.

Enabling health and public safety through diagnostics and data-driven technologies

The NRC will continue advancing research and innovation that improve the health and well-being of Canadians through better diagnostics, digital health technologies and data-driven health systems. In 2026 to 2027, the NRC will focus on strengthening Canada's ability to detect and respond to health threats, improve access to care and deliver practical solutions that enhance the safety and quality of health services across the country.

The NRC will also expand Canada's capacity for developing home-grown, rapid and reliable point-of-care diagnostic devices, including tools for dual-use detection of emerging threats. Work will begin this year on a new cleanroom biofabrication facility that, once complete, will provide pilot-scale cleanroom production capacity for microfluidic devices. This will enable industrial clients to prototype and test at scale, and advance their devices for clinical applications.

Working with Canadian SMEs, Health Canada and First Nations communities, the NRC will finalize the development of portable diagnostic tools for detecting foodborne pathogens and continue work on field-deployable methods, including for civilian and military use, to identify E. coli species in food systems.

In digital health, the NRC will focus on user-centred tools and virtual-care solutions that enable remote physiological monitoring and hybrid models of care for aging populations and underserved communities. Research will apply predictive analytics to detect early indicators of disease and develop computer-vision systems for fall detection, cognitive monitoring and vital-sign tracking. These technologies will improve accessibility, timeliness and quality of care while supporting independent living.

The NRC will continue developing AI-enabled data and monitoring platforms that support clinical adoption of new technologies. This includes evaluating scalable models for manufacturing, cybersecurity and interoperability to enable digital innovations to be safely deployed across health systems.

The NRC will also advance research on trustworthy and secure AI for applications in health, defence and public safety. Work on encryption, data validation and privacy-preserving computation will allow digital tools to be reliable, transparent and resilient against misuse. This AI expertise will also be deployed under the new AI for Productivity Challenge program to help Canada's manufacturing, clean technology and agricultural sectors achieve measurable productivity gains. Together, these initiatives will help Canada apply digital innovation responsibly to protect both individual and collective well-being while supporting economic growth and prosperity.

The NRC's 2026 to 2027 planned expenses and revenues are based on the Annual Reference Level Update. Also included in planned expenses are the NRC's portion of the expense accounts of the Canada-France-Hawaii Telescope Corporation ($6.7 million), TMT International Observatory LLC ($3.9 million) and Square Kilometre Array Observatory ($12.6 million).

The 2026 to 2027 planned revenues are composed of:

• Research services ($81.1 million)
• Technical services ($82.6 million)
• Intellectual property, royalties and fees ($2.3 million)
• Sale of goods and information products ($3.4 million)
• Rentals ($9.1 million)
• Grants and contributions ($30.3 million)

Also included is $2.3 million of accrued adjustments mainly from lease inducement revenue ($2.1 million) and other adjustments ($0.2 million).

The increase in FTEs is primarily associated with new funding to deliver programs, including growth and FTEs at IRAP and several research centres such as Construction, Aerospace and Clean Energy Innovation. Internal services FTEs have also increased to support the delivery of new programming and to respond to the NRC's increased contracting authorities. As a result, FTEs have increased in areas that primarily support program delivery, such as procurement, project management and information technology.

The Government's CER resulted in planned FTE decreases beginning in 2026 to 2027. These decreases are partially offset in both 2026 to 2027 and 2027 to 2028 by a planned temporary increase in FTEs associated with funding from the Department of National Defence to support defence research and development.