Scientific Research and Experimental Development (SR&ED) program was established to support R&D and innovation in Canadian industry. Any Canadian company advancing its knowledge by overcoming uncertainties via systematic investigation is eligible for up to 65% refund for its R&D expenses, including salaries, subcontractors, and consumed materials.
Cannabis only recently became legal in a few regions in the world, there are still many technological and scientific uncertainties across and around the industry.
It is common to see cannabis growers embracing production strategies that have not been validatedthrough rigorous scientific experiments. Rather, many conventions have been transmitted by means like word-of-mouth and internet forums.
This is still a new industry with little existing knowledge especially for large-scale producers to guide production decisions.
Moreover, cannabis plant is different from majority of plants in many aspects, and its cultivation is further complicated by many regulatory demands.
Even to date, the growth requirements for cannabis has not been fully explored, as opposed to many other food crops due to the plant’s complex legal history.
E.g., tomatoes are close to cannabis genetically and, similarly, often grown in greenhouses.
However, the knowledge available for tomatoes is irrelevant for cannabis as they grow in very different conditions (salter soil, less moist and less light demanding environment, etc.).
Given the inherent uniqueness tied to cannabis cultivation, the relevant scientific knowledge is substantially lacking.
Examples of SR&ED eligible projects in the cannabis industry
Development and testing of nutrients composition to increase yields and/or potency.
Development of more effective cannabinoids isolation/purification methods (e.g., extraction, distillation, winterization, etc.).
Development of more precise analytical methods for identification/quantification of cannabinoids and other compounds in cannabis (e.g., terpenes, pesticides, etc.).
Any challenging development of products with cannabinoids (oils, creams, food, pharmaceutical products, etc.).
Development of software or equipment for cannabis producers.
