GrantCanadaResearch & DevelopmentProduct Development

Innovative Solutions Canada Program: Challenges

This stream is open to Canadian small and medium businesses.

Through our competitions, we are looking for innovative ideas, early-stage innovations, and late-stage prototypes that can address specific challenges faced by government organizations.

By participating in this stream, you may receive funding to develop a proof of feasibility report, and/or you may receive funding to build and test your prototype.

Offered by Innovation, Science and Economic Development Canada (ISED)

Amount

Phase 1: a maximum of $150,000 over up to six months to develop a proof of feasibility report (in some cases up to $300,000); Phase 2: up to $1M over a maximum of 2 years to develop and test a prototype (in some cases up to $2M)

Quick eligibility check

Years in business

No minimum stated

Employees

Up to 499

Revenue

No limit stated

Legal structure

Incorporated

Location

Anywhere in Canada

Who can apply

To receive funding, you must meet all of the following criteria:

Operate as a for-profit entity
Be incorporated in Canada (federally or provincially)
Have 499 or fewer full-time equivalent (FTE) employeesFootnote *
Conduct research and development activities within Canada
Currently allocate 50% or more of your annual wages, salaries and fees to employees and contractors who spend the majority of their time working in CanadaFootnote *
50% or more of your FTE employees have Canada as their ordinary place of workFootnote *
50% or more of your senior executives (vice-president and above) have Canada as their principal residenceFootnote *

Calculations must take into account and include affiliated businesses, such as parent companies and subsidiaries, that are either in or outside of Canada. Under the Innovative Solutions Canada program, an "affiliate" relationship exists in the following situations:

If an affiliate is a corporation that is a subsidiary of another corporation.
If a corporation has two subsidiary corporations, the two subsidiaries are affiliates of each other.
If two corporations are controlled by the same individual or business, the two corporations are also affiliates of each other.

For greater clarity, the business applying in response to a challenge must include the full-time employees of its parent company (if applicable) when calculation the total full-time employees, taking into account affiliates located both within and outside of Canada.

About the funding

Specific details regarding maximum funding amounts, allotted timeframes for work completion and relevant phase for application will be outlined in each funding opportunity.

Phase 1 – Proving feasibility

At this phase, you must demonstrate the scientific, technical and commercial merit of your solution by developing a proof of feasibility report.

If your proposal is selected, you will have up to six months and a maximum of $150,000 in funding to develop a proof of feasibility report. In some cases, Phase 1 awards could reach a maximum of $300,000, and the timeline to provide a proof of feasibility may be subject to change.

Show all funding details

Phase 2 – Developing and testing your prototype

If you are selected for the prototype development and testing phase, you may receive up to $1M in funding over a maximum period of 2 years to develop your innovation. In some cases, Phase 2 awards could reach a maximum of $2M.