Navigating IP Funding : A Guide to Canadian Government Incentive Programs

© Micheile Henderson

Introduction

In the quest to improve Canada’s ranking in the Global Innovation Index, businesses can turn to multiple sources to fund their innovation and/or intellectual property (IP) initiatives upon satisfaction of eligibility requirements. This document aims to provide an overview of available incentive programs supporting IP costs. This list of incentive programs is not exhaustive. It is also important to note that programs are regularly updated, cancelled, or renewed. These funding programs are also important to help keep Canadian companies competitive.  

Federal Programs : Enhancing IP Protection and Innovation for SMEs and Startups

There are federal programs dedicated to providing funding to help small and medium-sized enterprises (SMEs) protect their IP in international markets. Examples of such include the Trade Commissioner Service – CanExport SMEs and CanExport Innovation. 

The Government of Canada has made a $90 million investment over four years, through the ElevateIP Program by Innovation, Science and Economic Development Canada (ISED). This investment helps business accelerators and incubators (BAIs) across Canada provide startups with access to professional intellectual property support, as well as Explore IP.

Natural Sciences and Engineering Research Council of Canada (NSERC) administers a suite of programs supporting collaborations with academia, IP protection, and IP Sharing. 

National Research Council – Industrial Research Assistance Program (NRC-IRAP) and IP-Assist provide financial support to qualified SMEs in Canada to advance technological innovation projects, do patent research, and protect their IP.

Quebec Programs : Tax Benefits, Innovation Support, and Export Assistance

The province of Quebec also has its own programs to help fund IP by government organizations to strengthen Quebec’s competitive advantage by encouraging the use of IP. 

One of these programs is initiated by Revenu Quebec, and is named DICI (Deduction for the Commercialization of Innovations in Quebec). This program aims to reduce the effective tax rate on the eligible portion of a qualifying corporation’s taxable income attributable to IP assets. 

Invest Quebec also launched its Innovation Program, of which Component 1: Support for Innovation Projects (in French only) aims to support companies at different stages of an innovation project, foster partnerships, protect IP assets, and promote better exploitation of research results and knowledge. 

In addition to its Innovation Program, Invest Quebec’s PSCE (Programme de soutien à la commercialisation et à l’exportation) also helps with IP funding. PSCE provides funding towards trademark registration costs in Quebec and internationally. This program has been reopened since April 2023. Quebec's (MEIE) has also initiated PSO programs to help fund IP to assist businesses in Quebec. 

Ontario Programs : Subsidizing IP Protection and Commercialization Costs

In order to help fund IP, IP-Ontario (IPON) may subsidize the cost of IP protection and commercialization services for eligible clients and provide access to a roster of service providers that IPON clients may choose to use.

Other programs supporting R&D & innovation (IP creation) : Canadian Programs: Boosting R&D and Innovation Through Tax Incentives and Funding

Other Canadian programs include the Canada Revenue Agency’s SR&ED tax incentives which provide up to a 35% tax credit on R&D costs (plus additional credits varying between provinces). 

ISED – the Strategic Innovation Fund (SIF) invests in innovative projects, including those that include R&D activities leading to technology transfer and commercialization of new products, processes, and services; and Global Innovation Clusters support collaborative IP-generating projects across Canada’s most promising economic clusters to accelerate growth in highly innovative industries;

Sustainable Development Technology Canada (SDTC) – Provides Seed, Start-Up, and Scale-Up funding to SMEs in support of new technology development, demonstration, and commercialization; and

Agriculture and Agri-Food Canada also offers a suite of programs supporting innovation, scaling, competitivity, marketing, etc., including the newly reopened AgriInnovate Program and AgriScience Program.

Other Province Programs : Alberta, Manitoba and Prince Edward Island

Alberta has put programs into place to benefit the funding of IP, one of them being the Voucher Program by Alberta Innovates. This program can help finance patent development for SMEs working in collaboration with a project partner; and the Micro Voucher Program offers funding (paid directly to a service provider) for activities including patent development for novel technological solutions.

Manitoba also has programs to address this issue such as the Innovation Growth Program assists SMEs in developing and commercializing new innovative products and processes by providing cost-sharing assistance for activities such as IP registration.

Last but not least, Prince Edward Island programs include  the Innovation Fund by Innovation PEI. The Innovation Fund assists businesses to bring a new product, service, or process to market by providing financial support for activities such as IP strategy and protection.

Enhancing Innovation and R&D : Key Programs and Incentives

Canadian businesses may also access the Business Benefits Finder, a tool created by the Government of Canada to help users identify funding opportunities and other supports offered by the federal, provincial, and territorial governments.