New Canada-UK Collaborative R&D Funding Program

Two countries, one mission: Innovation without borders. The new Canada-UK collaborative research and development (R&D) funding program is a transformative initiative aimed at fostering technological advancements through cross-border partnerships. This initiative, a joint effort between the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) and Innovate UK, seeks to bolster innovation across diverse sectors by supporting joint R&D projects between eligible Canadian and UK organizations. 

The program’s mission is to create collaboration between Canadian small-and-medium-sized enterprises (SMEs) and UK businesses. By encouraging collaboration in sectors such as life sciences, quantum technologies, artificial intelligence, and clean energy, this initiative aims to propel both countries into leadership roles in the global technology landscape.  

Eligible Canadian SMEs may receive up to 50% reimbursement of eligible project costs up to a maximum total funding amount of $500,000 CAD over 12 to 24 months. 

Funding Snapshot: Canada-UK Collaborative R&D 

To be eligible for funding, applicants must form a bi-national consortium consisting of at least one Canadian SME and one UK business. Canadian SMEs must be incorporated, for-profit entities with fewer than 500 employees and a clear commitment to international market expansion. On the UK side, companies of any size are welcome, provided they are incorporated for-profit businesses. 

Funding Amount: 

• Up to 50% of project costs, maximum $500,000 CAD for Canadian SMEs; funding through Innovate UK for UK partners. 

Eligible Applicants:  

• Canadian SMEs (≤500 employees), incorporated UK businesses of any size. 

Eligible Projects:  

• Co-development of innovative products, processes, or technology-based services with commercial potential 

Timelines: 

• Canadian registration deadline: January 8, 2025 

• Canadian expression of interest deadline: January 15, 2025 

• International consortium project proposal deadline: April 16, 2025 

• Projects should yield commercial results within 2-3 years of completion. 

The application process involves four distinct phases for Canadian applicants: registration, expression of interest, international consortium project proposal, and submission to the national funding body.  

UK applicants must follow similar steps through Innovate UK’s Innovation Funding Service. Applications are evaluated independently by national bodies before final joint project selection is made. 

Canadian Government Grants and Loans for Research and Development  

The Government of Canada offers a variety of grants and loans to support research and development (R&D) projects across numerous innovative sectors. One of the most prominent programs is the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program, which provides up to 35% in refundable tax credits for Canadian-controlled private corporations (CCPCs) and 15% for other types of corporations on qualifying expenditures such as salaries, materials, and subcontractor fees. This program is widely regarded as one of the most generous R&D tax incentive programs globally. 

Another key initiative is the Industrial Research Assistance Program (IRAP) administered by the National Research Council (NRC). IRAP funding can cover a portion of the project costs, helping businesses tackle technical challenges and accelerate product development. The program focuses on industries like digital technologies, clean energy, and advanced manufacturing, aligning with Canada’s broader innovation strategy. 

For businesses seeking larger capital investment, the Strategic Innovation Fund (SIF) is a powerful tool. It supports large-scale projects with a focus on R&D, commercialization, and business growth in high-potential sectors such as aerospace, automotive, and life sciences. SIF provides both grants and repayable contributions to projects that demonstrate strong potential for economic impact and technological advancement.  

To learn more about Canadian government grant and loan opportunities for your business projects, connect with Ryan’s team of government funding experts.