The cannabis industry in Canada is investing massively in R&D


By Nicholas Garcia

Two years after legalization, operating cannabis companies as well as many start-ups are now faced with a variety of challenges associated with improving the quality of their products and reducing their costs. Indeed, the complexity of the cannabis plant along with the industry’s nascent knowledge base implies that much work has to be done in order to be able to properly control the plants’ growth and production of desirable compounds such as THC and CBD.

R&D costs are often a huge burden

Technological developments in critical sectors such as lighting, genetics, and growth systems have the potential to resolve many of the industry’s challenges, but on top of already high operating costs, the costs of R&D can often be a huge burden for even well-established companies. This is why many in the cannabis sector are looking to government incentives to help fund their R&D activities. The most popular among these is SR&ED tax credits, which cover a wide range of types of R&D projects.

Opportunities to fund your R&D

However, many are not aware that their development activities could be admissible to these tax credits and are passing up the opportunity to better fund their research. Activities such as increasing plant growth density, testing different lighting conditions and atmospheric conditions, or controlling the production of specific cannabinoids such as THCV or CBG have a high chance of being admissible to SR&ED tax credits.

Don’t let this opportunity pass you by. Contact one of our experts today!


Nicholas Garcia

Nicholas Garcia

Senior SR&ED Manager