The federal government is providing $80.9 million over five years to the Canadian Space Agency to help it develop new technologies.
The funding, which was already announced in this year's federal budget, will support two projects.
One is a radar instrument that would be used to study the surface and subsurface of Mars. It could contribute to developing a high-resolution map of the surface of the red planet and help identify water resources at shallow depths.
The other is a demonstration of the applications of quantum technology in space involving the Institute for Quantum Computing at the University of Waterloo.
That project involves quantum encryption, which uses highly advanced computing technology to create virtually unbreakable security codes.
Economic Development Minister Navdeep Bains and Transport Minister Marc Garneau made the announcement today at CSA headquarters near Montreal.