Driving Digital Transformation: Funding for Canadian Businesses

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In an age dominated by digital innovation, Canadian businesses recognize the transformative potential of embracing cutting-edge technologies. As technology evolves rapidly, companies must not only keep up with trends but also innovate to gain a competitive edge. However, the financial investment required can often be a significant hurdle. To address this challenge, we’ve curated a list of key funding programs available to Canadian businesses seeking to advance their digital capabilities. By leveraging these funding opportunities, businesses can not only overcome the financial hurdles of digitization but also position themselves as leaders in their fields.

Innovation, Science and Economic Development Canada (ISED)

ISED’S Canada Digital Adoption Program (CDAP) is a cornerstone for small and medium-sized Canadian-owned businesses looking to embark on their digital journey. Under the Boost Your Business stream, this program offers grants covering up to 90% of the cost to develop a comprehensive digital adoption plan, up to a maximum of $15,000; 0% interest loans from the Business Development Bank of Canada (BDC) for technology acquisition; and a wage subsidy to leverage the help of talented post-secondary students and recent graduates. The CDAP provides vital financial support for businesses seeking to integrate advanced technologies into their operations. Additionally, the Grow Your Business Online stream extends micro-grants to small businesses, supporting their transition towards comprehensive digital integration.

Investissement Québec

Investissement Québec’s Productivité Innovation initiative extends loans starting at $50,000 to help Quebec companies enhance their competitiveness and accelerate growth through innovation projects, which may involve a product, a process, commercialization efforts or organizational processes. This initiative supports the adoption of innovative technologies and processes such as automation, digitization, robotization and the use of artificial intelligence.

Investissement Québec also funding for technological advancement through the ESSOR program. Component 1 offers up to $100,000 in grant money for Feasibility Studies and Digital Diagnosis. Component 2 offers loans and loan guarantees to support an innovative technological transition or the acquisition of new technologies. Finally, Component 3 offers loans and loan guarantees for the acquisition or implementation of clean technologies.

Développement économique de l’agglomération de Longueuil (DEL)

The Call for Projects in Digital Transformation 5.0 seeks to assist organizations in their industrial transformation towards Industry 5.0. Eligible projects must be related to either an already implemented technology or involve the implementation of a new technology. Additionally, they must impact at least one of the three other aspects of Industry 5.0: human, resilience, or environment. Funding up to $20,000 is available.

Ontario BIA Association & Digital Main Street

The Digital Transformation Grant (DTG) program from Digital Main Street helps small businesses in Ontario adopt new technologies. The grants, up to $2,500, offer support for training, advisory support, and the digitization of brick-and-mortar small businesses.

Alberta Innovates

Alberta Innovates’ Alberta Digital Traction offers grants of up to $50,000 to Alberta businesses looking to incorporate cutting-edge technologies into their operations. It targets candidates who are in the process of validating their product or service in the market and are aiming to scale their digital technology in the next few years.

Northwest Territories Business Development and Investment Corporation

The Accelerate Digital Adoption Projects for Tomorrow (ADAPT) Fund, available in the Northwest Territories (NWT), offers up to $2,600 in funding for digitization projects and can supplement the CDAP, up to a combined value of $5,000. Eligible NWT businesses can receive funding for the development of a new e-commerce website, the improvement of an existing one, digital marketing, hardware/software costs, and more.

National Research Council (NRC)

The NRC’s Construction Sector Digitalization and Productivity Challenge Program is a unique initiative aimed at driving innovation through digitalization in the construction sector. This program recognizes the potential of technology in improving productivity and contributes to the emerging low-carbon economy, offering crucial financial support to businesses looking to make this transition.

Final Thoughts

These funding programs serve as catalysts for Canadian businesses seeking to advance their digital capabilities. By leveraging these opportunities, companies can embrace a broader spectrum of cutting-edge technologies and position themselves for growth and competitiveness. It is imperative for businesses to carefully review the specific eligibility criteria and benefits provided by each program to make informed decisions tailored to their unique digital transformation needs and goals.

Need support applying for funding?

If you have questions about any of the above programs or are considering submitting an application, don’t hesitate to contact R&D Partners at 1-800-500-7733 for more information or to schedule a meeting with one of our funding experts.

Unlocking Innovation: Intellectual Property Funding for Quebec Businesses

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In the dynamic landscape of business and technology, intellectual property (IP) stands as a cornerstone for innovation and growth. For businesses in Quebec, a wealth of opportunities awaits through various funding programs tailored to support and foster the protection of intellectual property. In this blog post, we delve into the world of IP funding, shedding light on the avenues available for businesses to safeguard their ideas, products, and technologies. Join us to explore how these initiatives enable Quebec businesses to innovate and thrive on a global scale.

ElevateIP

The newly launched Elevate IP funding program, announced in Budget 2021, assists Canadian enterprises with up to 500 employees. It offers assistance in mastering intellectual property, including crafting and executing strategies like trademark and patent filings, copyright, trade secrets, and more. This initiative operates in collaboration with Canadian Business Accelerators and Incubators (BAI).

Industrial Research Assistance Program (NRC IRAP) – IP Assist

The National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP) has extended its advisory services with the IP Assist program to help profit-oriented small or medium-sized Canadian businesses drive growth through innovation. Qualifications include incorporation and a workforce of 500 or fewer employees. Successful applicants become integral to IRAP’s “portfolio,” receiving guidance from dedicated Industrial Technology Advisors (ITAs). The IP Assist program consists of three progressive levels of assistance:

Level 1, Awareness: Companies benefit from customized “IP 101” sessions, heightening their understanding of intellectual property and its significance.

Level 2, Strategy: Companies develop a comprehensive IP strategy guided by ITAs. This includes gap analysis, IP landscaping (excluding legal review), competitive analysis, and background art searching.

Level 3, Action: Building upon Level 2, companies execute initiatives aligned with their IP strategy. It covers expenses associated with implementation, such as trademark clearance searches, patentability assessment, IP audit, and branding strategy. Notably, filing fees for patents or trademarks are not covered.

Note that Levels 2 and 3 exclude expenses like legal fees, foreign agent costs, and conference fees.

Innovation Program

The Innovation Program’s Support for Innovation Projects Stream from Investissement Quebec supports for-profit businesses or business groups across diverse sectors. It covers a range of innovation projects, from the planning stage to pre-commercialization. Collaboration with partners outside Quebec is permissible, provided it generates substantial economic and technological benefits for the province.

The program provides comprehensive support for IP protection activities, including funding for IP strategy, rights/licenses, patent applications, agent fees, and IP portfolio assessment. It facilitates patent applications domestically and internationally.

The deadline to submit a complete application is September 22, 2023.

CanExport Innovation Program

The CanExport Innovation program, facilitated by Canada’s Trade Commissioner Service, is designed to support Canadian entities engaging in research and development with foreign partners. This initiative offers financial assistance of up to $75,000 CDN, covering 75% of expenses for a single technology. The program focuses on IP-related activities conducted in the foreign partner’s country, including application fees for patent or copyright protection through foreign agencies, as well as legal fees associated with pursuing IP safeguarding in international markets.

Applications are accepted year-round, but approved activities must be finished within the same government fiscal year (April 1 to March 31) as the approval.

Innovative Solutions Canada

Innovative Solutions Canada funds early-stage R&D and prototype testing through several streams. The Challenge stream issues challenges for early-stage innovations in a variety of industries and may cover IP costs for successful applicants. The Testing Stream issues calls for proposals for various themes or issues and funds late-stage innovations; IP is retained by the company.

Final Thoughts

The availability of IP funding programs offers a golden opportunity for Quebec companies to not only protect their innovative concepts but also fuel their expansion and success. By capitalizing on these initiatives, businesses can explore uncharted territories, drive economic growth, and amplify their presence on the global stage.

Need support applying for funding?

If you have questions about any of the above programs or are considering submitting an application, don’t hesitate to contact R&D Partners at 1-800-500-7733 for more information or to schedule a meeting with one of our funding experts.

The Funding Landscape for Canadian AI Startups

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The exponential growth of Artificial Intelligence (AI) has revolutionized industries worldwide, offering transformative potential and unprecedented opportunities for innovation. In Canada, the AI startup ecosystem is vibrant and dynamic, with pioneering companies continuously pushing the boundaries of what is possible in these fields.

However, as is the case with most startups, securing financing is a crucial step for AI entrepreneurs in bringing their visions to life. In this blog post, we will dive into the government funding landscape for AI and machine learning startups in Canada, to help them secure the necessary funding for their ventures.

IRAP and SR&ED

In Canada, technology companies benefit from two major funding programs: the National Research Council Canada’s IRAP (Industrial Research Assistance Program) and the Canada Revenue Agency’s SR&ED (Scientific Research and Experimental Development) funding. The National Research Council offers IRAP grant funding of up to $10 million (although generally less than $300k) for innovative R&D projects. Meanwhile, the Canada Revenue Agency offers SR&ED tax credits for eligible R&D activities. While the two programs are very different, both play vital roles in fostering technological advancements and driving innovation within the tech sector in Canada.

Beyond these programs, there are several funders in Canada that offer government programs specifically designed for AI companies. These programs offer a tailored funding experience for businesses developing AI and machine learning technologies, often offering industry expert advice in addition to financial support. Below are a few funders to consider:

Mitacs

Mitacs is a Canadian non-profit organization that fosters research collaborations between academic institutions and industry partners to support innovation and professional development. Mitacs’ AI, Quantum Computing, and Cybersecurity Initiative aims to advance research and development in these cutting-edge fields by connecting academic researchers with industry partners. The initiative provides funding for collaborative projects that address real-world challenges, facilitating knowledge transfer, and driving innovation in AI, quantum computing, and cybersecurity domains.

Scale AI

As part of Canada’s Innovation Supercluster initiative, Scale AI accelerates the adoption of artificial intelligence and machine learning technologies in various industries through funding and collaborative projects. It offers funding for projects that utilize AI in supply chain, involve the development or transformation of new technology, and involve multiple partners, including at least one SME.

NSERC  

NSERC, the Natural Sciences and Engineering Research Council of Canada, is a federal agency that supports and funds research and innovation in the fields of natural sciences and engineering. NSERC offers a variety of programs to support R&D projects. Among them, Alliance Grants provide up to $1M in funding and up to 100% of project costs for collaborative projects with partner organizations. Idea to Innovation Grants (I2I) and the Discovery Grants (Individual) Program may also offer support to AI companies engaging in R&D. As an artificial intelligence-focused program, NSERC Alliance – Alberta Innovates (AI) Advance grants supports projects by NSERC eligible researchers and Alberta-based universities.

Alberta IoT (Alberta)

Alberta IoT is an organization dedicated to promoting and supporting the growth of the Internet of Things (IoT) industry in the province. Alberta IoT’s Fast Track accelerator offers a technology ecosystem to help established IoT businesses in Calgary and the surrounding areas grow and increase collaboration. The program provides eight weeks of business training and courses, and one year of mentorship.

Québec Ministry of Economy and Innovation (Quebec)

The Québec Ministry of Economy and Innovation is a government department responsible for promoting economic growth, innovation, and investment in Quebec to enhance the province’s competitiveness. PARTENAR-IA, initiated by the Québec Ministry of Economy and Innovation, supports collaborative research projects in artificial intelligence by providing funding and resources to foster partnerships between academic institutions and industry, driving innovation in Quebec.

Ivado Labs (Quebec)

Ivado Labs is a research center based in Quebec specializing in data science and operational research, and focuses on generating innovative solutions to real-world problems. Its Invest-AI Program offers financial support and expertise to startups and small- and medium-sized enterprises in order to accelerate the development and commercialization of AI-based solutions, helping them overcome barriers and achieve growth in the evolving AI landscape.

Final Thoughts

Securing financing is a critical step for AI startups to thrive and bring their innovations to the market. Government funding initiatives, venture capital investments, research grants, strategic partnerships, and competitions all present opportunities for startups to access the necessary capital. By leveraging these funding sources, AI startups can fuel their growth, drive innovation, and make a significant impact across industries.

Need support applying for funding?

If you have questions about any of the above programs or are considering submitting an application, don’t hesitate to contact R&D Partners at 1-800-500-7733 for more information or to schedule a meeting with one of our funding experts.

5 Sources of Funding for Your Aerospace Company

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Canada is one of the most prominent players in the global aerospace industry and is home to many companies that are known on an international scale—Bombardier, CAE, Pratt & Whitney Canada, Héroux-Devtek and Thales are just a few among them. In fact, the aerospace industry accounted for over $24 billion in Gross Domestic Product (GDP) in 2021.  

However, like any industry, it requires funding to support research and development (R&D), expansion, and operations. 

In this article, we will discuss five funding opportunities that are designed to fuel companies in the Canadian aerospace industry. 

1. NRC Industrial Research Assistance Program (IRAP)   

The National Research Council’s Industrial Research Assistance Program (IRAP) is a federal program that provides funding to small and medium-sized enterprises (SMEs) to support R&D projects. IRAP offers a variety of services, including financial assistance, advice and guidance, and networking opportunities. Eligible aerospace companies can receive up to $10 million in funding for very large R&D projects, although funding is generally under $1M per client. 

2. Strategic Innovation Fund (SIF) 

Offered by Innovation, Science and Economic Development, the Strategic Innovation Fund (SIF) seeks to promote innovation, especially in several priority areas, including the aerospace and automotive industries and net zero initiatives.    

Through five streams, the SIF offers investments toward R&D and commercialization, firm growth, industrial research, and collaborative research. Streams 1 to 3 offer repayable contributions of a minimum of $10 million. Stream 5 supports national innovation ecosystems through investments in collaborations between corporations, academic and research institutions and not-for-profits.  

3. Aerospace Regional Recovery Initiative (ARRI) 

The Government of Canada supports Canadian companies in the aerospace industry or supply chain through the Aerospace Regional Recovery Initiative (ARRI). The program offers funding in the form of an interest-free government loan for projects that improve sustainability practices, increase productivity and promote integration into regional and global supply chains. Applications for the ARRI must be submitted through your regional development agency.  

4. Canadian Space Agency (CSA) 

The Canadian Space Agency (CSA) is a federal organization responsible for coordinating and managing Canada’s space program. The CSA provides funding for space-related R&D and technology development, as well as for space missions’ operations.  

The CSA has a number of programs and initiatives that provide funding to aerospace companies, including the Space Technology Development Program, which supports R&D projects, and the Lunar Exploration Accelerator Program (LEAP), which provides funding for the development of new technologies linked to Lunar exploration.  

Both programs are currently closed to applications but should reopen soon. 

5. Innovative Solutions Canada (ISC) 

Innovative Solutions Canada (ISC) is a grant program run by Innovation, Science and Economic Development (ISED), the government organization responsible for driving investment, innovation, and Canada’s share of global trade. The program offers grants for solutions to challenges that are opened frequently for short periods.  

ISC has partnered with the Canadian Space Agency (CSA) on several challenges, including calls for various AI technologies and sensor systems for space robots. Other relevant challenges have been launched in partnership with Transport Canada (TC), Innovation, Science and Economic Development Canada (ISED), and the Department of National Defence (DND).  

Although ISC is not exclusively aerospace-focused, it is always a good idea to keep an eye out for challenges that may be relevant to your company.   

How to find funding 

There are a number of funding opportunities available to Canadian aerospace companies, including programs from the federal government such as the Industrial Research Assistance Program (IRAP) and Strategic Innovation Fund (SIF), as well as programs from organizations like the Canadian Space Agency (CSA) and National Research Council of Canada (NRC). To find these and other relevant programs, please create a profile on our funding search engine. 

By taking advantage of these funding opportunities, Canadian aerospace companies can support their R&D, expansion and operations, and continue to innovate and compete in the global aerospace industry. 

5 Funding Opportunities for Robotics & Advanced Manufacturing Companies

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Advanced manufacturing is at the core of the Canadian economy—without it, creating better products and services and improving productivity would be difficult, if not impossible. Robotics, additive manufacturing, and big data analytics are key to developing innovative and efficient manufacturing processes. 

Canada has been seriously investing in robots since the 1990s. According to Statistics Canada, Canadian firms were using over $1.5 billion worth of robots by 2017. The majority of this technology was used in manufacturing. Invest in Canada reports that the manufacturing industry contributed to 9.5% of the Canadian GDP in 2021. 

However, there are still many efforts to make greater strides in the industry and to increase Canada’s competitiveness and global prominence in the development of cutting-edge technologies. Several not-for-profits and government agencies across Canada have programs and initiatives that promote the advancement of the manufacturing industry.  

Below are some key sponsors interested in fueling robotics and manufacturing innovation, as well as several major programs to look out for. 

NGen  

In 2018, the Government of Canada established five Innovation Superclusters, each representing a key industry sector in the Canadian economy: artificial intelligence, digital technology, plant protein development, marine technology, and advanced manufacturing. This initiative exists to foster innovation, collaboration between researchers and the private sector, and job creation, ultimately, strengthening Canada’s competitive edge in emerging technologies.  

Next Generation Manufacturing Canada, or NGen, is the not-for-profit organization spearheading Canada’s Innovation Cluster for Advanced Manufacturing. NGen strives to build world-leading advanced manufacturing capabilities in Canada, delivering better products and creating more jobs. As of October 2022, NGen has supported 167 projects, with a total value of $605M, and has helped create 1,030 jobs.   

NGen’s Pilot Projects & Feasibility Studies support collaborative projects, involving at least one Canadian SME and a partner organization, that seek to implement, develop, and/or de-risk the adoption of an advanced manufacturing technology or process.  

Innovation, Science and Economic Development Canada  

Innovation, Science and Economic Development Canada (ISED) is a department of the federal government with a mandate to build a competitive, growing Canadian economy. Through a variety of funds and programs, ISED fosters trade and investment, promotes science and innovation, and supports enterprise growth.   

One such initiative is the Strategic Innovation Fund (SIF). This fund’s Business Innovation and Growth streams promote research and development projects that will accelerate the implementation and commercialization of innovative products, processes and services. The Collaborations and Networks streams support research and development through industry collaboration between private sector organizations, not-for-profits, and researchers. The SIF strengthens the competitive advantage of Canadian industries through technological advancement and collaboration.  

Funding opportunities for Robotics and Advanced Manufacturing firms also exist through ISED’s Innovative Solutions Canada (ISC) program. ISC is a competitive research and development program stream that seeks pre-commercial innovations that respond to challenges issued by federal departments or agencies. These challenges are updated frequently and require high-tech solutions in various industries. Past challenges have included a call for prototypes in autonomous systems and robotics and request for proximity sensor systems for space robotics.  

The National Research Council of Canada 

The National Research Council of Canada (NRC) is the country’s largest federal research and development organization. The NRC partners with Canadian industry to bring innovation from lab to market, collaborating with over 1,000 companies each year. 

The NRC is best known for its Industrial Research Assistance Program (IRAP), an initiative that helps Canadian SMEs develop and adopt new technologies, conduct research and development, and drive business growth through financial assistance, advisory services, and networking. In 2018-2019, IRAP increased its funding limit to $10 million; however, assistance typically ranges from $50,000 to $500,000.  

Quebec’s Innovation Program 

In Quebec, the Innovation Program supports innovation projects that are either conducted in-province or with partners in other provinces or countries. This government initiative, funded by the Quebec Ministery of Economy, Innovation and Energy (MEI), is administered by Investissement Québec, a business development corporation that aims to help businesses establish subsidiaries in Quebec and to strengthen the Quebec business ecosystem.  

The program has two components: Support for Innovation Projects and Support for Mobilizing Projects. Both support for-profit corporations and groups of corporations, and social economy organizations including cooperatives and not-for-profit organizations. For robotics and advanced manufacturing organizations that thrive off of efficiency and cutting-edge technologies, the first component offers funding for the development or improvement of a product or process. Applicants must demonstrate a need for new innovation and for research and development efforts, and show a potential for commercializing the innovation. 

Business Scale-up and Productivity Program 

The Business Scale-up and Productivity (BSP) program helps high-growth firms adopt and commercialize leading-edge technologies and processes in advanced manufacturing, clean resources and technology, digital industries, health sciences, natural resources value-added processing, ocean technology, and value-added agriculture. The program accepts applications on an ongoing basis with no submission deadlines. 

The BSP program operates across Canada under different Federal Economic Development Agencies. In Quebec, the program is led by Canada Economic Development for Quebec Regions (CED) and offers SMEs interest-free, repayable contributions equivalent to up to 50% of eligible project costs. It focuses on firms operating in manufacturing, food processing, information, communications and multimedia technologies, and life sciences, but other sectors may also be eligible. 

The FedNor BSP program, which operates in Northern Ontario, offers the same.  

The FedDev Ontario BSP program provides between $500,000 and $10 million in interest-free, repayable contributions supporting up to 35% of eligible project costs. 

The Atlantic Canada Opportunities Agency BSP program serves businesses in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, offering unsecured, interest-free, repayable contributions. Additional funding may be available to Indigenous businesses. 

Finally, the PrairiesCan BSP serves Alberta, Manitoba, and Saskatchewan and funds up to 50% of eligible project costs, offering interest-free repayable contributions between $200,000 and $5 million. Preference will be given to applicants that are operating in food and ingredients processing, zero-emission heavy equipment vehicles, and critical minerals processing. 

How R&D Partners Can Help 

If you have any questions about the above programs or other funding opportunities, please reach out to Veronica Campbell at vcampbell@partenairesrd.com. 

Funding Opportunities for Sustainable and Connected Vehicles Innovation

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As one of the world’s leading vehicle manufacturing regions, Canada makes significant efforts to remain on the cutting edge of innovative automotive technologies.  

Canada leverages its innovation clusters and new ideas that emerge from startups, national, and international firms in Canada to revolutionize transportation and automotive technologies. The areas of focus include quantum technologies, AI, clean technologies, and advanced manufacturing. 

Several government agencies and not-for-profits across Canada focus on advancing greener transportation technologies, while others offer incentives that aid in the growth and development of automotive innovations.  

Below are some key sponsors interested in connected, sustainable, and autonomous vehicles in Quebec and Ontario that one should keep in mind when looking for funding. Within each funding program sponsor, we will highlight the flagship program(s) and sought benefits.  

Quebec
  

Quebec Ministry of Economy and Innovation (MEI) 

The Quebec Ministry of Economy and Innovation offers funding programs and partners with other sponsors to further accelerate scientific and technological advancements in Quebec. The Ministry emphasizes the importance of research and innovation and assists organizations dedicated to the promotion, development, and transfer of research and innovation.  

Call for Proposals in the Demonstration of Sustainable Transport Technologies  

This call for proposals plans to offer $6.5 million in grants over a five-year period to support SMEs within Quebec to carry out demonstration projects that showcase their land transport and sustainable mobility technologies.  

Eligible projects must develop a new product or process that has a significant advantage over existing solutions – or significantly improves current products and processes – and be undertaken in collaboration with a city or transportation company within Quebec. 

The grants offered through this program can subsidize up to 50% of project costs – up to a total contribution of $350,000 – and eligible projects may be no longer than 18 months in duration. 

Program details are currently only available in French, and the next deadline to apply is November 17th, 2021.  

This specific call for proposals is also part of the Quebec government’s larger Sustainable Mobility Policy for 2018-2030 (in French only).  

Ontario

Autonomous Vehicle Innovation Network (AVIN) 

The Ontario provincial government has dedicated significant resources to the development of the automotive industry, specifically for innovations related to autonomous vehicles.  

Ontario’s Autonomous Vehicle Innovation Network is dedicated to developing the economic potential of automotive and smart mobility innovations with the potential to radically change transportation methods and the related infrastructure.  

Through AVIN and the larger “Driving Prosperity” initiative, the Government of Ontario has dedicated $85 million to help Ontario SMEs develop, test, and commercialize mobility technologies for the future. This funding broadly supports research and development, talent acquisition, innovative initiatives, and more.  

AVIN directly offers several funding and support programs, but also partners with other organizations within Ontario to deliver targeted support for specific projects.  

AV Research and Development (R&D) Partnership Fund 

This program is divided into two streams and offers co-investment opportunities of up to 33.3% of project costs. Stream 1 offers up to $100,000 in total funding, while Stream 2 can offer a maximum of $1 million, as well as includes costs for hiring an intern as part of the project.  

Both streams are intended for projects developing connected and autonomous vehicles technology beyond the feasibility study stage and require the collaboration of at least one lead applicant and a partner. Ontario SMEs, Canadian or foreign corporations, municipalities, indigenous communities, not-for-profits, and post-secondary institutions are eligible applicants or partners for both streams. Publicly funded post-secondary institutions cannot act as the lead applicant for stream 2.  

AVIN Waterloo Ventures 

AVIN funds this program in partnership with Communitech and other partners. It is specifically designed to fund innovations in the fields of self-healing and high-definition maps that facilitate mobility.  

This program is intended for Ontario startups and scale-ups (500 employees or less) and offers grants of up to $50,000 to selected applicants. In addition to grant funding, the program also offers expert support and coaching to facilitate the development of a working prototype or improve the product in order to create additional market traction.  

Canada Wide
 

Sustainable Development Technologies Canada (SDTC) 

This National Canadian foundation was created by the federal government to help foster the growth of the clean technologies sector in Canada and promote environmental sustainability. Since its inception in 2001, SDTC has injected nearly $1.4 billion into 460 Canadian clean technologies companies and helped create over 16,000 jobs nationwide. 

Clean Tech Fund  

This fund provides grant financing to develop promising clean technology development and demonstration projects led by start-ups or scale-ups. The technology itself must be beyond the proof-of-concept stage, but not yet commercialized. The technology must also demonstrate a potential for GHG emissions reductions, reductions in water consumption and/or the reduction of water, soil or air contamination levels. The project must have demonstrated environmental and economic benefits for Canadians. These grants can subsidize up to $4 million or 40% of eligible project costs, with an average contribution of $3 million. 

The Clean Tech Fund’s portfolio of funded companies currently includes sectors ranging from agriculture and forestry to power generation and transportation. In the transportation sector, current accepted projects are also varied and show the wide range of the applications of new technologies to make the automotive and transportation sectors more sustainable: projects related to lithium-ion batteries, fleet management and route planning solutions, hybrid heavy vehicles and motion sensors for autonomous vehicles all qualified for the program!  

Applications for this program are accepted on a rolling basis, with five approval rounds per year. 

How R&D Partners can help   

If you have any questions about the programs we mentioned above, do not hesitate to contact Dominik Klein at dklein@rdpartners.com, or at 1-800-500-7733 ext. 103 

 

Funding Opportunities for AI Quebec Companies

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The Pan-Canadian Artificial Intelligence Strategy, launched in 2017, has catapulted Canada as a leading global player in AI. According to a report by the University of Toronto, this initiative has injected $125 million into the country’s top AI talent and research institutions as of 2020. It has also made Canada a true leader of AI innovation, bringing 50,000 jobs and $3 billion in investments to the country since 2015. In Quebec alone, there were 131 companies developing flagship products using AI in 2020.  

The implementation of the Innovation Supercluster strategy in 2018 and the establishment of an AI innovation supercluster in Montreal – Scale AI – continues to make Quebec a great place to develop artificial intelligence’s potential.  

As a result, significant investments have been made by government, not-for-profits and other key stakeholders to facilitate the growth of companies developing AI-powered technologies. There are now countless funding opportunities that AI startups, SMEs and entrepreneurs at various stages of their journeys can leverage to continue developing and implementing innovations related to artificial intelligence. 

Keep reading to find out more about five key funders that any company developing or implementing AI in Quebec should know about.  

 

Scale AI 

The Supercluster Initiative was launched in 2018 with the goal of fostering innovation in key economic sectors, increasing collaboration between the private sector and researchers, creating jobs, and giving Canada a competitive edge when it comes to technological development. There are five superclusters across Canada, each focused on one key industry sector: digital technology, plant protein development, advanced manufacturing, marine technology and artificial intelligence. This last supercluster is known as Scale AI.  

Scale AI offers grants meant to create customized training programs for companies to enhance their employees’ knowledge and understanding of AI tools. These training grants can subsidize up to 85% of the first $100,000 of eligible training costs. 

They also offer an Acceleration program, which supports accelerators, incubators, innovation hubs and others involved in supporting and scaling-up Canadian AI startups with great potential. This program does not offer direct support to startups, but rather seeks to develop a robust innovation ecosystem through accredited partners.  

Scale AI’s main hub is located in Montreal and its activities are co-funded by the Federal and Quebec governments, but funding is being made available to companies Canada-wide. For example, their Acceleration program was expanded to British Columbia and Ontario in 2020.  

Want to learn more about this supercluster and the four others available to innovators in various industries across Canada? Read our article dedicated to the Supercluster Initiative.  

 

IVADO Labs 

IVADO Labs is a leading provider of AI-driven supply chain solutions. This Montreal-based organization was launched in 2017 with major support from the provincial government and in partnership with IVADO and its founding academic institutions. Through this unique partnership, IVADO Labs has access to a world-renowned faculty fellow network of the largest Canadian AI R&D federation of labs. 

The INVEST-AI program is a division of IVADO Labs with the mission to help small and medium Quebec companies increase their performance by integrating and applying AI to their business processes. This program has 4 main objectives: 

  • Improve the productivity and competitiveness of businesses in Quebec through the application of AI 
  • Enable companies to implement the AI solutions they develop within two years 
  • Provide businesses with the capacity to maintain those AI solutions
  • Expand the use of AI to other areas of the business  

Mitacs 

Mitacs is a National Canadian non-profit organization that builds partnerships supporting industrial and social innovation nationwide through its partnerships with 70 universities, 6000 companies, and both the federal and provincial governments. From aerospace systems to childhood literacy rates, Mitacs-funded research helps to strengthen connections, improve economic performance, and create jobs. 

While they are perhaps best known for their paid internship program, Accelerate, Mitacs offers an eight-week Digital Revolution collaboration course for companies of all sizes hiring students and post-doctoral fellows who are well-versed in AI, quantum computing, and cybersecurity to help them develop and harness these new crucial technologies.  

 

Quebec Ministry of Economy and Innovation 

The Quebec Ministry of Economy and Innovation offers funding programs of its own and partners with other sponsors to further accelerate scientific and technological advancements in Quebec. The Ministry emphasizes the importance of research and innovation, and assists organizations dedicated to the promotion, development and transfer of research and innovation.  

The Partenar-IA Business program is aimed at business groups, including start-ups or a minimum of 2 SMEs, wishing to carry out an innovative and collaborative R&D project. This call for projects originates from the Ministry of Economy and Innovation, but is administered by Quebec’s nine Industrial Research Sectorial Groups – Regroupements sectoriels de recherche industrielle or “RSRI” in French. These groups are dedicated to promoting the development and adoption of AI in their specific industry areas. 

Eligible projects are those that highlight research related to the field of artificial intelligence and that is carried out in collaboration with an eligible public research center. At the time of publication, the next application deadline for this program is October 15th, 2021. It is important to keep in mind that, as with many Quebec Government funding programs, most information about the program is in French.  

The MEI also currently has an active Call for Innovative Artificial Intelligence Projects that offer grants to fund various AI projects through 3 components: 

Component 1 is geared towards SMEs and startups wishing to carry out an innovation project for the development and marketing or adoption of artificial intelligence (AI) technologies. Component 1 is intended for artificial intelligence startups that currently receive (or plan to receive) support from a business incubator or accelerator. 

Component 2 is open to all Quebec companies, with priority given to SMEs and startups wishing to carry out an innovation project for the development and marketing or adoption of artificial intelligence (AI) technologies. It is intended for artificial intelligence projects related to the production of goods and services or for carrying out in-house research and development activities. 

Lastly, Component 3 is intended for major collaborative projects undertaken by consortia composed of at least two Quebec companies. The businesses involved in these collaborative projects must share the costs, benefits, and intellectual property of the project.  

Program details for all components are only available in French, and, at the time of publication, the next deadline for all three components is October 15th, 2021.  

 

CEIM Montreal 

CEIM Montreal is a pioneer of Montreal’s startup ecosystem that has contributed to the successful launch and development of various companies. Through its offering of accelerator and incubator programs, CEIM’s mission is to support entrepreneurs with innovative projects by offering them tailored coaching and mentoring services. 

The AI for Supply Chains program offered by CEIM Montreal has both an incubator and accelerator that can offer $35,000 to both early-stage or growth-stage startups. Both programs are directed towards earlier stage startups developing an AI solution that can have applications in supply chain management.  

 

How R&D Partners can help   

If you have any questions about the programs we mentioned above, do not hesitate to contact Dominik Klein at dklein@rdpartners.com, or at 1-800-500-7733 ext. 103 

 

Further reading:  

Canada’s AI Ecosystem: Government Investment Propels Private Sector Growth (University of Toronto) https://research.utoronto.ca/media/541/download 

7 Funding Opportunities for Life Sciences & Health Technology Businesses

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While the life sciences and health technology sector – LSHT for short – has seen an average of about 5% growth per year over the past decade, 2020 was a critical year for medical innovations as the world faced the COVID-19 pandemic. This crucial industry encompasses everything from prosthetics to pills, as well as therapeutics, diagnostic tools and methods, medical devices, pharmaceuticals, and any other product designed to treat a disease or aid in the treatment of patients.  

Now more than ever, the importance of R&D in the medical and pharmaceutical sectors is collectively understood, and topics like vaccine manufacturing capacity and the rapid development of new therapeutic treatments and technologies like ventilators has come to the forefront of our discussions as a society. 

Of course, with the increased need for PPE, new medical technologies, treatments, vaccines and more, the government as well as private sponsors have dedicated increased funds to projects related to the LSHT sector. In 2020 and 2021, Innovative Solutions Canada launched innovation challenges to develop new, compostable surgical masks and more inclusive respirators, for example.  

Other program sponsors have always been focused on funding life sciences and health technology innovations and helping ground-breaking Canadian LSHT companies grow. The rest of this article will highlight some key sponsors offering funding programs, support services, and accelerators specifically meant for pharmaceutical, health technology, and life sciences companies across Canada and in Quebec.  

 

Support Organizations and Research Consortia 

Montreal InVivo 

Montreal InVivo is a non-profit that represents the LSHT cluster of Greater Montréal and is a credible source of information and reference for the LSHT sector. It aims to create a business environment that fosters innovation, growth, and competitiveness of the public and private organizations in the LSHT sector. Their recent partnership with Fundica allows SMEs to search for private and public funding through a powerful search tool with smart filters and advanced customization.  

CQDM 

The CDQM is a biopharmaceutical research consortium that funds the development of innovative tools and technologies to accelerate the discovery and development of safer and more effective drugs. Their business model is based on a collaborative approach between world-class pharmaceutical corporations, several Canadian biotech companies, the best scientists from both the public and private sectors, as well as the Canadian and Quebec governments. The CQDM has raised over $90M and has established 11 funding programs, launched 49 calls for proposals and more than 800 evaluated projects, for a total of over $850 M in funding applications. 

The Quantum Leap program offered by the CDQM is a funding program for drug discovery research and strongly encourages public-private partnerships between Canadian universities and SMEs to achieve innovative translational biopharmaceutical research projects. The deadline to participate in the current selection round is August 12th, 2021.  

MEDTEQ 

MEDTEQ is a focus point for Canada’s medical technology sector in terms of research, innovation and the integration of leading-edge solutions in the delivery of health care. Through collaborative industry-led projects, MEDTEQ’s mission is to accelerate innovation and to position products and services developed by the Canadian medical technology industry on a global scale.  

MEDTEQ’s Impact and Partenar- IA program is aimed at all public research centers and Quebec businesses (primarily SMEs and startups) wishing to carry out an innovation project for the development and commercialization or adoption of artificial intelligence technologies. The deadline for their 17th Call for Project is July 15th, 2021, with eligible projects required to be carried out by public research centers in collaboration with at least two companies. 

 

Startup Support & Accelerators 

Because the pharmaceutical and medical industries are constantly evolving, various accelerator programs can help LSHT startups grow. Montreal Universities Concordia and McGill also offer their own accelerator programs for startups in the LSHT sector.  

AdMare Bioninnovations 

adMare Bioinnovations is a Canadian global life sciences venture that works with academic researchers and companies to advance research, scale existing companies and technology, and provide professionals in the field with the skills they need to succeed.  

They offer an acceleration program supported by the Canadian and Quebec government to scale up promising young life sciences companies. Companies will receive capital up to $150,000 and other resources such as coaching/mentoring and discounts on office or lab spaces.  

District 3 

Concordia’s District 3 focuses on advancing an open, collaborative ecosystem that enables entrepreneurs to thrive and succeed while taking no equity from the companies they work with. Their Biohub 8-week accelerator offers weekly workshops, networking events with industry professionals, and potential access to their state-of-the-art wet lab.  

McGill Dobson Centre for Entrepreneurship 

In the Spring of 2021, McGill’s Dobson Centre for Entrepreneurship opened applications for a Health Sciences Lean Startup Program to accelerate health-related innovation through the development of entrepreneurship. The 8-week program includes weekly workshops and exposure to industry experts and business frameworks. The deadline to apply is September 26th, 2021, with the program activities taking place from October 19 and December 7th of the same year.  

Quantino 

In a recent press release, high-tech business incubator provider Quantino announced a new partnership with Université Laval’s Québec Heart and Lung Institute Research Centre that will provide incubation services to emerging medical businesses.  

Their goal is to develop made-in-Québec solutions for preventing, diagnosing, and treating cardiovascular and respiratory diseases (including COVID-19 and other emerging viruses) as well as type 2 diabetes and obesity. Quantino offers first-rate facilities, world-renowned experts and top-of-the-line technology to their incubatees to further accelerate their progression. Interested LSHT startups can apply to become an incubatee as of June 22nd 2021. 

 

How R&D Partners can help  

If you have any questions about the programs we mentioned above, do not hesitate to contact Dominik Klein at dklein@rdpartners.com, or at 1-800-500-7733 ext. 103. 

The Dos and Don’ts of Grant Stacking

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Entrepreneurs looking for funding in Canada have access to a large number of government programs that can support many of the costs associated with running a business: from R&D salaries and subcontractor costs to export-related expenses like market research and advertising to name only a few.

Despite the variety of programs in existence—whether they be tax credits, grants, low-interest government loans or other—many end up having overlapping eligible costs. Meanwhile, “double-dipping”—the practice of covering the same expense twice with two or more programs, under certain conditions and scenarios—is not allowed, for obvious reasons.

In fact, governments often put out multiple grants and tax credits intentionally focused on the same expenditures. Therefore, the number of programs available explodes. However, the expenses that can be covered are finite and to what extent they can be funded is generally capped at a certain percentage. This creates two problems:

1) The government is inefficiently and independently managing applications, claims, and audits for two or more programs that could be just one since they essentially cover all the same expenses.

2) Entrepreneurs need to apply for several programs rather than one. They try to maximize government funding but often do so without realizing that there are restrictions on the amount of funding a project or an expense can receive. This often ends up being less than the combined maximum offered by the programs the entrepreneur applied to, and the programs essentially “cannibalize” each other.

Over the last year, we have seen the second issue reach new heights as several—albeit very important—COVID-19 support programs, like the Canada Emergency Wage Subsidy (CEWS), became available to businesses. Since both the CEWS and the CRA’s Scientific Research & Experimental Development tax credit program (SR&ED) fund employee salaries, businesses claiming SR&ED in 2020 that benefited from the CEWS see a layer of complexity added to their SR&ED claim—they essentially need to remove their CEWS funding from their eligible expenditures for SR&ED when calculating their tax credit.

This process is further complicated by the changing funding rates of the CEWS—a subsidy that offered varying rates of financial support depending on the calculated revenue loss—as well as the SR&ED’s eligible activities and time tracking requirements. The CEWS / SR&ED cannibalization scenario was previously documented here, but this problem is not exclusive to emergency COVID-19 support.

Here is an example to illustrate the grant “cannibalization rate” concept more broadly. Take an imaginary company headquartered in Quebec with annual salary expenditures of $50,000. They develop innovative products and are eligible for the SR&ED tax credit. They find a grant to cover 50% of their payroll expenses for the year. Should they go for that grant?

The quick, obvious answer might seem to be “yes”. If they apply to the grant program and are accepted, they will ultimately receive more money from the government to cover the year’s salary expenses. But is that extra money worth it? When we break it down further, we quickly find that it might not be as advantageous as it first appears. This fictional company would benefit from running the following scenarios before making a final decision:

Note that in this example, we assume that the company is a Canadian Controlled Private Corporation (CCPC) where the incremental expenditure is above the minimum QC threshold. We can see that 54% of the grant ($13,625) is cannibalized before you even get to the cost of applying for or managing the grant, or the expected success rate. This leaves our example company with an $11,375 possible grant that is further reduced to $5,688 when we take typical success rates into consideration.

The cannibalization rates are generally between 35% and 55% for the situation above across other provinces prior to grant management costs. These cannibalization rates increase even more when dealing with other grants competing for the same expenditures until a ceiling is reached. In many cases, the cannibalization rates can reach 100% as early in the process as the second grant because the stacking ceiling has already been reached.

The simulation above is also interesting because we notice that the cost of applying for, managing, monitoring, and—heaven forbid—supporting the audit for, a grant is important to understand as well. It is estimated to cost $5,000 in the example.

When we add everything up, this fictional company only has a weighted incremental benefit of $688 if they go for the grant. However, the grant also may also provide this business with greater cash flow as it is received before the SR&ED tax credit. The value it can bring is not exclusively in terms of the total contribution received from the government; the timing is also important when considering this added cash flow.

In the end, always make sure you understand the success rates, cost, cash flow needs, net benefit, and what is important to you in a grant application before you pursue it. If you are planning to access competing government programs, then make sure you understand the cannibalization rates associated with combining them as well.

There are some excellent government grants that we use regularly for our business, but make sure you are informed before devoting time, energy, and money to applications that may not yield the return on investment you hoped for.

If you have more questions about grant stacking and cannibalization rates or want to find out how R&D Partners can help you maximize your government funding and simplify your life, please contact Mike Lee at mlee@rdpartners.com 1-800-500-7733, ext 110.