Where is All the Innovation in Canada?
Written by:
Niro Ragunathan, Client Manager.
In order to make the next leap forward in advancing your business, companies must make the decision towards investing in innovation and R&D. An article completed by Ottawa-based think tank, The Conference Board, reported on the quality of life in Canada in comparison to other developed countries and graded Canada poorly in terms of innovation within the country.
With a grade of “D”, the article states that Canada ranks second last in the amount Canadian businesses spend on R&D and venture capital expenditures. However, the country does well in terms of the quality of scientific research and ranks 8th on a global stage in terms of the Canadian government’s R&D spending on businesses in the form of tax credits, loans and grants. Yet R&D spending by Canadian businesses has dropped from 1.29% of GDP in 2001 to 0.89% of GDP in 2011.
The investment of staff, capital and time into R&D and innovation can be a deterrent for companies to undertake as it can disrupt the productivity of the business and become an overall cost burden without guaranteed success. Nevertheless, in order to remain competitive on a global stage, innovation and R&D by Canadian companies is a must and as such the Canadian government has invested in several government programs to encourage businesses to take on the R&D risks, while reducing their financial load.
With funding programs such as SR&ED, IRAP, SOFII, AgriInnovation and OIDMTC, the question remains: Why aren’t more companies taking advantage of these programs to develop R&D and innovation within their business?
Whether you’re a manufacturer of windows, a developer of digital software or even a producer of baked goods, there is room to advance your business using government funding to help finance such activities. Eligible innovation and R&D activities that are applicable for funding include:
- Adapting existing technologies;
- Developing new products in existing or new end markets;
- Extending machine capabilities beyond standard processing parameters;
- Improving product reliability;
- Modifying product design;
- Developing new technology;
- Improving processes in production and testing;
- Advancing unproven technologies.
Once you have identified an eligible R&D or innovation project, it’s time to find out what government programs the project and business may qualify for. Government programs have various criterion on who may be eligible to apply and conditions range from size of the company, organizational structure, scope of the project and even the location of the facilities. Also, each initiative has different eligible costs, deadlines to apply and when costs can be incurred.
It is therefore critical to fully understand your project and the program criteria prior to applying. NorthBridge Consultants can help alleviate your time and resources required to identify and complete government funding applications and ensure you receive full value from government funding programs.
