IRAP Funding

What is IRAP Funding?

The Industrial Research Assistance Program (IRAP) is widely considered the most entrepreneur-friendly government funding program in Canada. Unlike loans, IRAP provides non-repayable contributions to help SMEs overcome innovation challenges and accelerate technology commercialization.

Key Benefits for Startups

Non-Repayable Funding

IRAP provides contributions, not loans, meaning successful applicants don't need to repay the funding regardless of project outcomes.

Expert Advisory Support

Each funded company receives a dedicated Industrial Technology Advisor (ITA) who provides strategic business guidance and network connections.

Risk Mitigation

Funding reduces financial risk of innovation projects, enabling pursuit of higher-risk, higher-reward opportunities.

For Canadian technology startups, IRAP represents exceptional value by combining funding with expert mentorship to accelerate innovation and commercialization success.

Key Program Features

Non-Repayable Funding

IRAP provides contributions, not loans, meaning successful applicants don't need to repay the funding regardless of project outcomes.

Industrial Technology Advisors (ITAs)

Each funded company is assigned a dedicated ITA who provides ongoing strategic advice, business guidance, and network connections.

Flexible Project Support

Funding can support various innovation activities including R&D, technology development, market validation, and commercialization.

Network Access

IRAP connects companies to research institutions, industry experts, potential partners, and other funding sources.

Eligibility Criteria

Company Requirements

• Canadian-incorporated SME with ≤500 employees
• Demonstrable research and development capacity
• Financial capacity to complete the project
• Technology development focus with commercial potential

Project Requirements

• Innovative technology development or adaptation
• Clear market demand and commercial potential
• Technically feasible with identifiable risks
• Alignment with Canadian economic priorities

Eligible Activities

• Applied research and experimental development
• Technology demonstration and validation
• Prototype development and testing
• Market validation and commercialization planning
• Technology transfer and adaptation

Funding Structure

Contribution Rates

Pre-Revenue Companies: Up to 100% of eligible costs Revenue-Generating Companies: Typically 50-75% of eligible costs Established Companies: Generally 50% of eligible costs

Eligible Costs

• Salaries and benefits for R&D personnel
• Equipment and materials for project use
• Subcontractor fees for specialized services
• Travel costs related to project activities
• Overhead costs (limited percentage)

Typical Funding Amounts

• Early-stage projects: $50,000 - $300,000
• Advanced development: $300,000 - $1,000,000
• Large-scale commercialization: $1,000,000+

Application Process

1. Initial Contact

Connect with local Industrial Technology Advisor to discuss project feasibility and program fit.

2. Proposal Development

Work with ITA to develop comprehensive project proposal including technical approach, market analysis, and budget.

3. Technical Review

IRAP conducts technical and business assessment of proposal, often involving external expert review.

4. Funding Decision

Approval process typically takes 6-12 weeks, with funding agreements outlining milestones and reporting requirements.

5. Project Execution

Regular check-ins with ITA, milestone reporting, and financial reporting throughout project duration.

Strategic Advantages of IRAP

Risk Mitigation

Non-repayable funding reduces financial risk of innovation projects, enabling companies to pursue higher-risk, higher-reward opportunities.

Expert Guidance

ITAs bring decades of industry experience and extensive networks, providing value beyond just funding.

Credibility Enhancement

IRAP funding serves as third-party validation of technology and business potential, helpful for attracting private investment.

Network Access

Connection to NRC research facilities, universities, and other innovation ecosystem partners.

Maximizing IRAP Benefits

Early Engagement

Connect with IRAP advisors early in technology development process to align projects with program priorities.

Clear Value Proposition

Articulate clear market need, competitive advantage, and commercial potential of technology development.

Strong Project Management

Develop realistic timelines, budgets, and milestones to demonstrate project execution capability.

Leverage Advisory Services

Fully utilize ITA expertise for strategic planning, partnership development, and business growth.

Integration with Other Programs

SR&ED Tax Credits

IRAP funding can be combined with SR&ED tax credits, potentially covering up to 135% of qualified R&D costs.

Provincial Programs

Many provinces offer complementary innovation funding that can be stacked with IRAP support.

Private Investment

IRAP funding often helps companies achieve milestones needed to attract venture capital or angel investment.

Success Factors

Technology Readiness

Projects with clear technical feasibility and defined development path are more likely to receive funding.

Market Validation

Evidence of market demand and customer interest strengthens funding applications.

Execution Capability

Demonstrated ability to execute similar projects and manage technical development effectively.

Strategic Alignment

Projects aligned with Canadian innovation priorities (cleantech, digital technology, health innovation) receive preference.

IRAP represents one of Canada's most valuable startup support programs, providing both funding and strategic guidance to help innovative companies overcome technology development challenges and accelerate commercialization success.