In a rapidly evolving economy, innovation is essential. The National Research Council of Canada’s IRAP funding program is one of the country’s most impactful tools for helping small and medium-sized enterprises (SMEs) push these innovative ideas to market.
What exactly is IRAP? How does it work? And more importantly, how can your business benefit from it?
The following is a comprehensive guide to demystify IRAP and help you leverage one of Canada’s most powerful R&D funding programs.
What is IRAP funding program?
The Industrial Research Assistance Program (IRAP) is a non-repayable funding program administered by the National Research Council of Canada (NRC).
IRAP combines advisory services with financial assistance to help companies at different stages of the innovation lifecycle, from ideation to market launch.
Unlike tax credits or repayable loans, IRAP offers non-repayable contributions that reduce the financial burden of R&D.
Key Benefits of IRAP Funding
IRAP is not just another government grant. Here’s why it stands out:
- Non-repayable funding
- Covers up to 80% of salaries for employees working on R&D projects
- Covers up to 50% of subcontractor costs
- Support from an Industrial Technology Advisor (ITA) who guides you from concept to proposal execution.
Types of IRAP Projects
IRAP supports a range of R&D initiatives, categorized by scale and focus:
1. Accelerated Review Process (ARP) for Small Projects
- Up to $50,000 in funding
- Supports early-stage R&D, feasibility studies and commercialization planning
2. Technology Innovation Projects for Mid to Large Scale Projects
- Up to $10 million in funding
- Targets businesses with high growth potential and scalable innovations
- Often used for new product development, AI integration, software creation and industrial engineering solutions.
3. Youth Employment Program (YEP)
Looking to grow your team while investing in young talent?
The Youth Employment Program (YEP) offers up to $30,000 in wage subsidies to help you hire recent post-secondary graduates (ages 15 to 30) for tech and innovation-related roles.
These 6 to 12 months internships are designed to build internal capacity while supporting career entry for youth in STEM, multimedia, marketing analysis or R&D.
IRAP Eligibility Criteria
To apply for IRAP funding, your company must meet these baseline conditions:
- Incorporated and profit-oriented
- Located in Canada
- Employing 500 or fewer full-time equivalents
- Focused on developing and commercializing innovative, technology-driven products, services or processes.
Non-profit organizations, large enterprises and businesses not focused on tech innovation are not eligible.
What Expenses are Covered?
IRAP reimburses eligible costs directly related to R&D activities, such as:
- Salaries of technical staff (up to 80%)
- Subcontractor services (up to 50%)
- Prototype development
- Market validation and feasibility studies
- Product design and testing
Please note that IRAP doesn’t cover capital expenditures.
Ready to Accelerate your Innovation?
Our team of funding experts can help you make the most of IRAP and other funding programs like SR&ED.
They support you every step of the way to prepare all necessary documentation and offer coaching for the call with the ITA.
Contact us today to unlock savings!
