How to Receive IRAP Mid-Size Project Funding for Innovative R&D

Update: The National Research Council (NRC) now offers project-based funding through a single Industrial Research Assistance Program (IRAP). Please visit the NRC-IRAP Research Project Contributions page for more information.

Innovative Canadian businesses who invest heavily in internal research and development activities understand the strain that it can put on company resources. SMEs are heavily impacted when one or more members of their team becomes consumed by the R&D project at hand, and if the project requires multiple personnel, the effect is compounded. Thankfully, IRAP Mid-Size Project grants support the development and commercialization of technology-driven products, processes, and services.

Companies may be able to recover 65-80% of internal labour expenses up to $500,000 in IRAP funding, and in doing so can reduce the barriers to them performing valuable R&D.

IRAP Mid-Size projects often follow the successful completion of a smaller IRAP ARP research project and focus on the commercialization of an innovation currently in development.

Businesses Eligible for IRAP Funding Through IRAP Mid-Size Projects

Businesses may be eligible for IRAP Mid-Size project funding if they:

• Are located in Canada;
• Have been operating for at least 2 years;
• Are a for-profit, incorporated organization;
• Employ between 1-500 full-time equivalent staff; and
• Earn revenue through the development and commercialization of innovative products, processes, or services.

Projects Eligible for IRAP Mid-Size Research Grants

IRAP Mid-Size Project funding is devoted to the development and commercialization of technologically advanced products, processes, and services. This produces a wide variety of projects that may apply, however please note that the project must:

• Have an internal research component;
• Create at least 1 job per year for at least 2 years;
• Result in $10 of revenue growth for every $1 of grant funding requested; and
• Result in $12 of economic benefit to Canada for every $1 of grant funding requested.

Projects Not Eligible for Funding

Therefore, projects not eligible for IRAP funding include:

• Projects that are not exploratory, or that focus on a particular client or contract;
• Projects that are unable to quantify the resulting benefits;
• Projects that do not result in the creation of at least 1 job per annum over the first 2 years of the project; and
• Projects that result in the termination of employees without job creation of new roles.

What Expenses Are Eligible for IRAP Canadian Government Grants?

IRAP Mid-Size Project funding covers the cost of salaries paid to employees directly involved in research and development activities. This amount excludes any business owner’s salaries, even if the company owner is heavily involved in the R&D project.

Most successful applicants should expect funding contributions up to a maximum 65% of eligible expenses. Alternately, highly innovative projects may be eligible for up to 80% of expenses.