OTTAWA – A review of Canadas aerospace industry warns that the industry is under threat from ambitious new players.

And its calling on the federal government to spend more to develop space technology, but to take the money from other research programs.

Former cabinet minister David Emerson, who led the wide-ranging review, says Canada should be proud of its status as a global aerospace power.

But he says the government needs to redouble efforts to develop new technologies to remain competitive.

The review recommends that Ottawa negotiate new bilateral co-operation agreements with the United States and European countries, but also with China and India.

It also calls on the government to spend $10 million in each of the next three years to bolster the work of the Canadian Space Agency.

It recommends the government find the money within the current budget of the Strategic Aerospace and Defence Initiative.