Boost Your Business with Canadian R&D Funding
Are you a Canadian innovator trying to reduce the costs of your collaborative research projects? Government grants are widely available and can be a game-changer for your business. Whether you’re working directly or through an institution where your research projects are performed, there’s funding available to help you achieve your goals. This article explores how you can support your upcoming research projects through collaborative semester and multi-year projects and by hiring co-op, intern, Master’s, and Doctoral students.
Collaborative One-to-Five Year Projects
Collaborating with post-secondary institutions can be a fantastic way to support a wide range of research project costs. By partnering with a college or university professor to lead a project and a team of post-secondary students, you can recover a significant portion of laboratory, equipment, material, and labor costs. One-to-five-year research projects are well-aligned to receive support through Canada’s NSERC Alliance program.
NSERC Alliance Program
Administered through the Natural Sciences and Engineering Research Council (NSERC), the NSERC Alliance program aims to generate new breakthrough innovations that result in positive economic impacts. Here are some key details:
- Funding Amount: SMEs may receive up to 50-66% of eligible project costs, to a maximum of $1M per year, or up to 100% of eligible costs to a max of $100K per year.
- Application Process: Applications for NSERC Alliance can be submitted year-round with an approximate four to sixteen-week turnaround time for review/approval. Once approved, research project activities can begin.
- Continuous Intake: The NSERC Alliance program has a continuous intake of applications, with research partners and universities applying together.
Government Funding for Research Collaborations
Mitacs Programs
Another excellent way to receive collaborative research funding is through Mitacs, a not-for-profit organization offering two streams of funding:
- Mitacs Accelerate: This program pairs businesses with Masters, PhD, and Post-Doctoral interns to overcome innovation challenges. Companies can connect with professors and get support from students on project deliverables, with up to 75% of funds covered up to $7,500 per 4-6 month internship. Applications are accepted continuously.
- Mitacs Elevate: This program connects PhD fellows to industry partners, providing funding to hire a PhD fellow for a minimum of one year (ideally two years). The project budget is $55,000/year for 2 years: $25,000 Mitacs grant + $30,000 company contribution, with bi-annual calls for proposals (spring and fall).
Funding also exists for projects that do not require a post-secondary institution’s facilities and faculty. Collaborative research projects where a company hires one or more students to perform R&D activities can also be supported with government incentives. The education level influences the available funding, so ensure you contact a Mentor Works representative to learn more.
Industrial Research Assistance Program (IRAP)
The IRAP R&D Grants funding program is designed to accelerate the research and development projects of Canadian innovators. Businesses developing and implementing industrial process solutions can apply for research funding contributions through IRAP. However, large-scale technology adoption projects that lead to new, more sustainable capabilities are also considered.
- Funding Amount: Funds up to 60-80% of internal technical labor and subcontractor expenses.
- Applicant Eligibility: Employ 1-500 staff, incorporated for ≥2 years, committed to internal R&D activities.
Navigate the complexities of IRAP vs. SR&ED funding with confidence. Discover which program best suits your business’s R&D projects by exploring our comprehensive guide.
Scientific Research & Experimental Development
The SR&ED R&D Tax Credit is the largest single source of Canadian federal government support that incentivizes business-led research and development projects. The program provides more than $3 billion in tax incentives to over 20,000 claimants annually.
The program offers different levels of funding depending on the eligible expense:
- Labor: Up to 69% of eligible salaries (including overhead).
- Contractor: Up to 36% of contractor costs.
- Materials: Up to 45% of materials consumed.
In addition to the federal credit, most provinces and territories also provide additional support of between 3.5% and 30% of eligible qualifying expenditures.
Discover the differences between IRAP vs. SR&ED funding and discover what is right for your business project.
Apply for R&D Grants Today!
Securing funding is crucial for driving innovation and staying ahead in the competitive market. The NSERC Alliance and Mitacs programs provide significant support for research and development projects. Additionally, leveraging the full breadth of services under Ryan LLC, including SR&ED and property tax incentives, can help your business thrive. Don’t miss these opportunities to advance your projects and achieve your business goals. Contact us today to learn more about how we can support your funding needs and help you maximize your R&D efforts.
If your business is performing research & development in Canada, you may be eligible to receive tax credits covering up to 69% of labor and overhead costs, 36% of contractor costs, and 45% of material costs through the Scientific Research and Experimental Development (SR&ED) program. We’ve put together a free SR&ED 101 guide PDF that you can download to learn more about how you lower your R&D project costs.
