Navigating the World of IP Funding: A Guide to Canadian Government Incentive Programs

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 as of March 2023. This list of incentive programs is not exhaustive. It is also important to note that programs are regularly updated, cancelled, or renewed. 

Examples of programs directly supporting IP expenses or providing benefits related to IP

  • Quebec programs
    • Revenu QuebecDICI (Deduction for the Commercialization of Innovations in Quebec) reduces the effective tax rate on the eligible portion of a qualifying corporation’s taxable income attributable to IP assets;
    • Invest QuebecPSCE (Programme de soutien à la commercialisation et à l’exportation) provides funding towards trademark registration costs in Quebec and internationally. This program is currently closed but is expected to reopen in April 2023.
  • Ontario programs
    • IP-Ontario (IPON) may subsidize the cost of IP protection and commercialization services for eligible clients and provides access to a roster of service providers that IPON clients may choose to use.
  • Alberta programs
    • Alberta Innovates – the Voucher 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 programs
    • 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.
  • Prince Edward Island programs
    • 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.

Examples of programs supporting R&D and innovation (IP creation)

  • Canada Revenue Agency SR&ED tax incentivesprovide 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; andGlobalInnovation 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;
  • Agriculture and Agri-Food Canada –Offers asuite of programs supporting innovation, scaling, competitivity, marketing, etc., including the newly reopened AgriInnovate Program and AgriScience Program.

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.

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